DavidD66
Expert Alumni

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When you sell Employee Stock Purchase Plan (ESPP) shares at a gain, some or all of the gain is considered "employee compensation".  Because of the length of time you held the shares, your sale would be considered a qualifying disposition and the compensation amount would represent the lesser of:

 

  • The gross sales price minus actual discounted price paid for the shares, or
  • The per-share company discount times the number of shares - 15% of the lowest price of the quarter according to your question.

For additional information the following TurboTax Article:  Employee Stock Purchase Plans

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