The sale of stock acquired from a a Qualified ESPP always has the potential for creating compensation income. This compensation needs to be reported as such and the compensation gets added to the out of pocket cost to determine if the sale results in gain or loss.
There are two types of dispositions:Qualifying and NonQualifying. A Qualifying disposition is one where the sale is:
more than a year after the purchase of the shares, and
more than two years after the grant date.
A disposition that doesn't meet both of the above tests is a NonQualifying disposition.
This is relevant as the way compensation is calculated is different between the two types of sales.
TurboTax has an interview that can help, but what you really should have is the Form(s) 3922 that you should have received with each lot. Perhaps that information is there in the taxlot data the broker has supplied.
But if you have both Qualified and NonQualified sales you have to employ a work around in TurboTax to get things to come out properly.
Do you have both types of sales, or only one?
