No, it does not. This article assumes that ESPP shares are held by the employer and taxes are not paid on the ordinary income (Compensation Income) until the shares are sold. My former employer reported the "bargain amount" on my W2 in the year the shares were purchased and the shares were transferred to my brokerage account at that time. Hence, the fair market value on the day the shares were purchased is my basis which is comprised of my payroll deductions to participate in the plan and the ordinary income reported on my W2. Several of these lots were sold in 2021. The gains are all long term and I have records to support the basis as described. But I still have a question. When answering the interview question, do I enter $0 for the compensation income for 2021 since the compensation income was for prior years? If no, do I enter the total compensation income for the purchase lot or the amount attributable to the fraction of the purchase lot now being sold?
