AmyC
Expert Alumni

Get your taxes done using TurboTax

A Box 14 memo like yours generally means it is in your wages. If you have questions about your w2 and what numbers are where and why, contact the issuer to verify. Any taxed income on stock is part of the basis for those shares. You should have records of every share purchased and sold along with the cost, sales, and commissions paid. You should be keeping track of which stocks you are selling and what is left. The IRS recommends you have a spreadsheet. You can track shares, use FIFO, LIFO, etc. You need to have a system and be using it. First In First Out is often the easiest.

 

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your  carryover information, and proof of your basis in your various investments. You must keep tax records  from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses / carryforwards/ basis.

 

If you do not have the records, the IRS will use zero as a basis.

 

What do you mean by stocks purchased from company, some had basis and some blank? All shares purchased through ESPP would be lumped together for that time period with one sum of money divided among them. For example: You bought 10 shares for $120. Each share has a $12 basis. The broker may or may not know what your employer is doing and what is in your w2. The employer may or may not give them any information or it may not be accurate. This is why it is your responsibility to track them all.

 

@Toon99

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