If I receive stock reported as income (W-2), then sell the stock (no profit), is the selling taxable (1099-B)?

Answer 1

What you seem to be describing is a very common issue with NQ stock options. The income first appears as a "V" code value in box 12 on your W-2. You normally exercise the option and sell the stock on the same day with little or no change in the price of the stock between purchase and sale. The stock broker sends you a 1099 B for the sale. 99.99 % of these transactions have a zero loss or gain but must be reported on a Schedule D. Failure to do so will result in a CP2000 letter from the IRS requesting tax on the full sale price of the stock.

When reported correctly you pay the tax on the amounts reported on your W-2 and the 1099 B is a wash (zero loss or gain).

Answer 2

If you have no profit on the stock sale then there is no tax to be paid. You do, however, have to report all stock sale proceeds to the IRS whether or not you have a gain. I guess since you say there is not profit then you're cost basis would equal your proceeds. You do have to report this on a Schedule D though.

Answer 3

If you sold the stock when you received it as compensation, then you would record the sale on Schedule D. You would have a loss equal to the transaction costs.