How to calculate taxes due for free IPO shares of NUAN (employee grant) in 2000, bought by MSFT? MSFT forced a cash in on all the shares MAR2022.

Eric from NorCal · ‎April 18, 2023

My brokerage held these shares since they were granted, and my understanding this predates all the new tax laws that went into effect. Any help would be greatly appreciated.

KristinaK · ‎May 18, 2023

It seems that the biggest challenge of your situation is determining your basis in the shares disposed of. If the fair market value (FMV) of the shares granted to you was reported on your W-2 as income, then your basis is the amount reported as income. If nothing was reported as income, then your basis is zero.

Once you determine that, you will take the cash paid to you in March of 2022, less your cost basis of the same number of shares and determine your gain. Then report it on Schedule D.

How to determine the cost basis of stock.

Where is Schedule D?

NUAN Stock prices

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