ESPP purchased in one lot but sold over multiple dates

[tfischer92]

I participated in a ESPP and have form 3922 from my employer.  In December 2020, I purchased 5.886 shares and this is showing up as one line in form 3922.  However, I sold 5 shares in March 2022 and 0.886 shares in April 2022 and thus this is showing up as two lines in form 1099-B.  When I report form 3922 for the sale do I show the full number of shares transferred (5.886) for both sales or split up the number of shares based on the number I sold (i.e. report the 5 shares for the March sale and the 0.886 shares for the April sale).

[hbl3973]

tfischer92,

First of all, Form 3922 is not a tax form.  It is just a informational form.  It appears you held your shares more than one year after purchase and more than two years after the grant date, i.e. the start of the period when monies were deducted from your paychecks towards the purchase.  This strongly suggests you were in a qualified ESPP plan.  To get the basis for your 5.886 shares, you should generally add the discount amount that appeared on your W-2 (often documented in box 14 and included in box 1) to your (discounted) acquisition price.  (If your ESPP plan had a lookback option, then look over

https://workplaceservices.fidelity.com/bin-public/070_NB_SPS_Pages/documents/dcl/shared/StockPlanSer...

for the calculation.)

OK, once you have the basis for the 5.886 shares, simply it by 5.886 to get your per share basis.  Multiplying by 5 gets your basis for the first sale and by 0.886 gets the basis for the second sale.  (If the 1099-B shows the gross proceeds add any sales commissions to the basis, too.)

[hbl3973]

Oops, just noticed that 2 years from the grant date (which I presume was 6 months before the Dec 2020 purchase date) would have been June 2022, which is after the dates your sold the stock.  So you had a disqualifying disposition in which event you simply add your purchase price to the discount (which is included in Box 1 of the W-2) to get your cost basis.  When divided by 5.886, this should equal Box 4 of the 3922.