ESPP: treatment of shares sold for taxes

[JackLord]

My question is how to treat the ESPP shares sold by the company for taxes.

For example, I purchased 23.57 shares. The company then sold 1.07 shares for taxes and refunded me the value of 0.5 share balance leaving me with 22 whole shares. I entered the sale of these 22 shares in TT and am satisfied with the results. What do I do about the 1.07 shares the company sold to cover taxes? How to enter in TT?

[ThomasM125]

You just need to report the sale and cost information reported on your Form 1099-B for the year. The shares sold to pay taxes should be included with the sales listed on your Form 1099-B in the year they were sold. The discount on the shares sold will be reported on your W-2 form in box 1. You may need to adjust the cost basis reported on your Form 1099-B to include the discount, as often the 1099-B form will just report what you paid for the shares and not include the discount.