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    justineac's Avatar
    justineac Posts: 1, Reputation: 1
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    #1

    Feb 27, 2010, 09:45 AM
    1099-B and tax return and escrow amount
    My company was acquired and I received monies from an incentive stock plan in 2007. I now have a 1099-B for the amount that was held in escrow. I am unsure how to report this on my tax return. I thought I already paid taxes on the entire amount. Also, th 1099-B doesn't list how much per share they held back.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Mar 1, 2010, 10:51 AM

    You received a 1099-B if the plan administrator sold some of your stock holdings (I assume that's what happened here). This often happens if you exercise a stock option at work and the plan has to buy sell stock on the open market to generate the cash to pay you. You report the stock sale on Schedule D - the 1099B shows how much you received on the sale, and the statement you received when you exercised the option should show you what your basis was - should be the amount per share that you were credited (and as you point out is ordinary income to you and yoalready had withheolding taken out). The two figures are probbaly very close - maybe just a few cents/share apart - so the amount of capital gain tax here is minimal. But don't make the mistake of ignorng it, or the IRS will assume that your cost basis is $0.

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