The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: ESPP Computations||Date: 3/10/1999 5:35 PM|
|Author: TMFTaxes||Number: 11876 of 121455|
[[I sold shares purchased in my Employee Stock Purchase Plan and am trying to
understand what portion is reported as normal income and what to report as my
Here is an example of the relevant data using 1 share:
The begining option date: 6/1/96
The ending period date: 12/1/96 (purchase date)
Date stock sold: 6/11/98
Shares sold: 1
Beginning date FMV: 51.250
Ending (Pruchase) date FMV: 36.812
Purchase Price: 31.500
Total Proceeds from sale: 56.52
Now, according to TurboTax, I have a gain of $25.02, of which $19.50 is
reported as normal income. My capital gain amount is $5.52.]]
But you also have to remember that if this is a normal stock purchase plan (and not a stock option plan), the DISCOUNT that you were given on the shares would have been added to your W-2 income, and should also be added to your cost basis in the shares.
Your company should have an overview...a plan summary...of the stock purchase plan. You should read it because it should give you an overview of the tax issues.
[[ Is TurboTax wrong or an I missing something?
I think that you are missing something. The plan summary and IRS Publication 550 should set you straight.
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