maglib
Level 10

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Good question.  I would think the reorganization would follow the same rules as recognition of gains and no losses in the reorg.  Your employer would have calculated the gain to include in your w-2 if there was income to recognize and you would have gotten a 1099B just like anyone else received in the reorg.  I found these:  <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-wd/0317023.pdf">https://www.irs.gov/pub/irs-wd/0317023.pdf</a>  and  <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-wd/201519031.pdf">https://www.irs.gov/pub/irs-wd/201519031.pdf</a>  I would think your employer would have sent some information.

If you participated in an employee stock purchase  plan:
You don't include any amount in your gross income as a result of the grant or exercise of your option to purchase stock.
You may have to report compensation on line 7 of Form 1040, U.S. Individual Income Tax Return, and capital gain or loss on Schedule D (Form 1040), Capital Gains and Losses, and Form 8949, Sales and Other Dispositions of Capital Assets, when you sell the stock.
The amount of compensation and capital gain or loss depends on whether you satisfy the holding period requirement.
You satisfy the holding period requirement if you don't sell the stock until the end of the:
The 1-year period after the stock was transferred to you, AND
The 2-year period after the option was granted
You should receive a Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c), from your employer when the employer has recorded the first transfer of legal title of stock you acquired pursuant to your exercise of the option. This form will assist you with the tracking of your holding period and your cost basis for the stock purchased through your qualifying plan.
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