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Investors & landlords
this depends on how they were reported to you and included as w-2 income.
More recently the bargain purchase element was NOT reported until sold. So to the extent any discount was offered to you for the shares, the bargain purchase element gets reported as ordinary income when sold.
TT will walk you through this reporting if you enter it in ESPP interview.
In the US old tax laws you were required to pay tax at ordinary income tax rates for the discounted purchase as ordinary income (the discounted cost to you was considered taxable ordinary income). The free shares would have also been taxed when received at ordinary income tax rates at delivery to you (completely taxed). LTCG or STCG then would be based on the value of the stock at delivery of both since you already paid ordinary income taxes on the cost of the shares, and decided on if you held them.
More recently the bargain purchase element was NOT reported until sold. So to the extent any discount was offered to you for the shares, the bargain purchase element gets reported as ordinary income when sold.
TT will walk you through this reporting if you enter it in ESPP interview.
Read more https://turbotax.intuit.com/tax-tips/investments-and-taxes/employee-stock-purchase-plans/L8NgMFpFX
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
‎June 4, 2019
5:04 PM