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chriswesthoff
Returning Member

We sold ESPP stocks bought over a few years. We do not have form 3922. How do I enter information required?

 
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3 Replies
HelenC12
Expert Alumni

We sold ESPP stocks bought over a few years. We do not have form 3922. How do I enter information required?

Are you able to get form 3922 from your employer? If the cost basis in Box 1e is wrong, it's helpful to have Form 3922.

 

Since the gain on that stock sale was included as income on your W-2, to avoid double taxation:

  • You will need to change the stock basis on the date of the sale, to the price on the date of sale.  
  • The result is zero gain or a minor loss due to brokers commission/fees.  
  • The IRS will expect to see that information on your tax return.  

To enter your 1099-B form, see Where do I enter a 1099-B? 

 

For additional information, see the TurboTax article: Non-Qualified Stock Options.

 

 

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chriswesthoff
Returning Member

We sold ESPP stocks bought over a few years. We do not have form 3922. How do I enter information required?

Thanks for the reply. I have the W-2 and the 1099-B. I am not sure how to enter the Date Acquired as the 1099-B says 'various' and it does not allow me to enter various

GeorgeM777
Expert Alumni

We sold ESPP stocks bought over a few years. We do not have form 3922. How do I enter information required?

To follow-up on the excellent comments from @HelenC12, the date acquired information is very important and you are correct in that "various" will not work.  The brokerage firm that effected the sale of the shares likely did not know when the shares were purchased, and therefore, used "various" as the date acquired.  Additionally, the brokerage firm may not have known your cost basis, and therefore, your 1099-B may reflect a cost basis of 0.  However, if the 1099-B reflects a cost basis of 0, do not use 0 because you likely purchased the shares at a discounted price, and thus, your cost basis is that discounted purchase price.  

 

The date acquired information will let you know whether the sale of the ESPP shares was a qualified sale (referred to as a qualified disposition) or a non-qualified sale (disposition).  Generally, companies will allow employees to purchase shares through an ESPP, at select times during the year such as quarterly.  You can check with your company to see at what times employees purchased shares through the company's ESPP and then use such dates to determine when you purchased the ESPP shares in question.  

 

Here is a link to a TurboTax article that discusses Employee Stock Purchase Plans.  You may find this article helpful. 

 

Employee Stock Purchase Plans

 

@chriswesthoff

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