Hello,
I have some questions about ESPP (Employee Stock Purchase Plan) sales, I want to avoid double taxation. Specifically, I would like to discuss the differences between qualifying and non-qualifying dispositions and how the holding period affects this.
I sold some stock in 2024 that I had purchased in 2024. On my W-2, I noticed information in Box 14 "Other [Amount] DQDIS," which matches the discount I received on the purchase of the employee stock I sold.
My question is: what should I enter as the Cost or Other Basis—"Exercise Price paid per share" or "FMV per share on exercise date" from Form 3922?
Here is an example:
W-2:
Form 3922:
- Exercise Price paid per share: $100
- FMV per share on exercise date: $110
Form 1099-B:
- Date Acquired: 03/30/2024
- Date Sold: 04/01/2024
- 1d Proceeds: $110
- 1e Cost or Other Basis: [empty]
If more information is needed, please let me know.
Thank you for your assistance!
