Cost basis, Form 3921 and Form 3922

These two information returns carry the numbers you need to compute basis on option and ESPP shares.

Form 3921

Issued after an ISO exercise, it reports the strike price, fair market value at exercise and share count — the inputs for your AMT adjustment and dual cost basis.

Form 3922

Issued for ESPP share transfers, it provides the offering date price, purchase date price and actual purchase price needed to split ordinary income from capital gain.

Keep them forever

You may sell those shares years later. Without these forms the basis calculation becomes guesswork and usually resolves in the IRS's favour.

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