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Investors & landlords
Normally the "Spread" (the amount of the discount) is reported on your W-2 in the year you sell the stock. That should be included in Box 1 on your W-2.
Your Capital Gain form the sale would be the gain from the price you paid less the price you sold for.
So if the stock was Fair Market Value of 100 and you were given a 15% discount, in the year you sell the stock, you would have 15.00 included in box1. If you sell at 110, you would have a 10.00 Capital Gain.
Your discount and the Fair Market Value when purchased should be reported on your Form 3922.
The sale should not be on your W-2, that should be on your 1099-B.
Are you sure the discount was not 200 and the gain 1,400?
To clarify, are you also a Shareholder and received stock as a dividend? Did you later sell that stock? Was the sale of the dividend stock also on the 1099-B? The dividend stock should be a separate issue unless it was an employee stock award.
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