sale of ESPP at loss: correct edition of turbotax and can the long-term loss be used to reduce my taxes?

[ross2022]

Hello,

I am trying to

a) understand the proper desktop edition of turbotax (Deluxe or Premier) that I need to handle my ESPP sale (loss)

b) understand if I should have received any other tax document (such as a 1099-B)

c) understand if my long term loss may qualify for reducing my 2023 taxes

Background:

In 2023 I sold some company stock I had purchased through the ESPP program. The stock was sold for about the same amount as my employee contribution, but an overall loss when considering the company's contribution. For example, let's say I deducted $10,000 from my paycheck for the stock's purchase, where the value of the stock purchased was about $11,500 market value cumulative at time of purchases (note: most purchases were made prior to 2023). When I sold the stock in 2023, it's sale value was about $10,000. The sales advice statement shows a short-term gain of $100 and a long term loss of $1,500 for an overall covered loss of $1,400.

For tax documents, I received only a 1099-DIV for the $100, but it is possible I missed something.

I have no other stock transactions during 2023.

[ThomasM125]

Turbo Tax Deluxe will handle your employee stock transactions. You should receive a Form 1099-B reporting the sale of the stocks. If you sold the stock for less than you purchased it, you will have a capital loss that may be deductible against ordinary income. If you sell the stock less than two years from when you were granted the right to purchase it, or less than a year from when you acquired it, you will see the discount you received when you purchased it appear as wage income in box 1 on your W-2 form. That will be added to your cost basis in the stock that will be used to determine your capital loss on sale. Your combined net capital losses are limited to an annual deduction of $3,000.

When you enter the Form 1099-B in TurboTax for the sale of the stock, you will see an option to report it as Employee Stock Purchase Plan (ESPP). Once you choose that option, TurboTax will guide you through the entries to properly account for your employee stock sale. You enter your Form 1099-B in the Wages and Income section, then Investment Income, then Stocks, Mutual Funds, Cryptocurrency, Bonds, Other.