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Get your taxes done using TurboTax
Yes. The information below explains the amounts that would show up in your W2.
An ESPP allows employee to purchase their employer's stock, usually at a discount. Holding the shares more than one year after the purchase date and two years after the grant date results in being taxed at the long term capital gain rate for the appreciation. The amount of the discount is added to the W-2 by the employer and taxed at the ordinary rate. For this reason the discounted amount would be added to the cost basis to eliminate double taxation on the discounted amount. You should be able to see this amount on your W2 or Form 3922.
- Form 3922 shows the grand and exercised dates as well as the fair market value (FMV) per share on each date. It will also show the exercise price per share.
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‎January 4, 2022
6:21 AM