When entering the Market Price on the purchase date for ESPP, what's considered the purchase date? date acquired, date sold or settlement date?

[sdidden]

Didn't receive form 3922 and attempting to enter required information for sale of ESPP stock.

Market Price is considered the NASDAQ closing price for the day in question correct?

[levisncap89 · Accepted solution]

Purchase date is the day that the company used the accumulated funds to purchase shares and transferred them to your ownership. i.e acquisition date.

Correct - market price is the closing price on the applicable market the day that the transfer took place.

Your basis is what you actually paid for the shares, so you end up with two components of consideration - the difference between purchase (or establishment, depending on how long you waited to sell) and market, and the difference between market and sale. The rules get complicated with respect to treatment of the ordinary income component of the transaction. Part of it is compensation & included on your W2, the rest is capital gain.