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tremorchrist
Returning Member

AABA liquidation and ESPP

How's one supposed to report ESPP bargain element for AABA liquidation? AFAIK, there's no W2 that's been issued by either Yahoo!/Verizon or Altaba Holdings. I'm trying to get hold of folks at Altaba, but it's going slow as they only have a part-time consultant to handle queries from ex-Yahoo! employees.

 

Thanks,

TC
PS: I had commented at https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-how-to-handle-alta..., but thought of making it a top level question after receiving no traction. I'm sure I'm not the only one with ESPP that got liquidated in AABA's dissolution.

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1 Reply

AABA liquidation and ESPP

I looked at your embedded post and what you've posted here and I don't understand why you think you need a W-2.

 

I assume the disposition of the shares acquired via the ESPP is a Qualified Disposition - it is more than a year after the purchase of the shares, and it is more than two years after the grant date. More commonly than not employers do not issue W-2s for Qualified Dispositions.

 

Any disposition of these shares, even via liquidation, can create compensation that needs to be reported and added to your out of pocket cost basis, however in the case of a Qualified Disposition the amount of compensation created by the sale, if any, is not simply the bargain element at your time of purchase.  TurboTax "knows" the rules here and if you use the ESPP "guided" interview and have all the relevant information - information that should be available to you if you have Form 3922 - then TurboTax will calculate that amount, if any, correctly.  In order to get this compensation posted into your income tax return on the appropriate line you must complete the the entire "Stocks, Mutual Funds, Bonds, Other" interview, not simply stop when your done entering the sale.  Eventually you will come to a page titled "Your Employer Stock Plan Results."   That page will show the amount of compensation calculated by TurboTax and ask if this amount is what is shown on your W-2.  If you answer "No" here TurboTax will take that amount and include it in line 1 of Form 1040.

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