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Financial Planning / Tax Strategies


Subject:  Re: Incentive stock: capital or compens? Date:  3/8/1998  12:01 PM
Author:  spaz Number:  2494 of 127549

<Your employer should report $1,000 of compensation income, and you pay tax on that amount. In
addition, the broker sends you a 1099-B showing you sold stock for $3,000. On Schedule D you
report that you received $3,000 proceeds from the sale of stock. And you show your basis in the
stock as $3,000 (the $2,000 you paid plus the $1,000 that was taxed as compensation). >

This gets me much closer to determining what I need to do about my ESPP plan sale (see thread "espp - qualifing disposition - TTax), however in the espp plan, I am the one that needs to report the compensation, my employer does not. Any idea where I would report this?

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