I have a consolidated form 1099-B that shows many transactions (from JPM). How do I know which stocks are part of the ESPP v. RSU (all were purchased years ago)?

[hbl3973]

nicktedesco,

While fundamentally it is up to you, the owner, to keep such records, you may be in luck.  If either JPM handled the original transactions or the original institution transferred that information to JPM, see if your 1099 statement has a page or more with supplemental information that shows an adjusted basis for any ESPP holdings.  RSU holdings should have no need to adjust their basis from the fair market value that was used to determine their value and the tax due at their vesting.  (Of course stock splits do change the per-share basis, but if you sell all of them, the total basis remains the same.)

If, sigh, you do not luck out this way, you'll first have to dig out your records, or obtain them from the company, and then ping back here to learn how to figure out the correct adjusted basis values.

[nicktedesco]

Thank you so much! Very helpful! Might I ask why it is important to adjust for the ESPP transactions?

[hbl3973]

nicktedesco,

ESPP cost basis and taxation is controlled by three dates: the date that funds start accumulating towards a purchase (Grant Date), the date of the actual purchase, and the date the shares are sold.  When you sell, you are imputed to have a certain amount of ordinary income corresponding to the purchase discount and a certain amount of capital gain.  These numbers depends upon whether you have held the shares for at least 2 years from the grant date and 1 year from the purchase date.  You can follow the details in https://www.fidelity.com/products/stockoptions/faqpurchase.shtml for example.