Where do I need to report pre-ipo gains in turbo tax?

[vj_nd]

My company gave me pre-ipo stock options of $1 for 10000 stocks. I bought all assigned stocks 2500 of them at $1 and fair market value was $5. So, I've got a gain of $10000. Where shall I report this in Turbo tax? Please let me know exact form.

[PattiF]

You would not report the stock options on your tax return until you have sold the stocks. Your purchase is considered to be statutory stock options since the option was granted under an ISO or incentive stock option plan.

You generally don't include any amount in your gross income when you receive or exercise the option. You will have taxable income or deductible loss when you sell the stock you bought by exercising the option. ANy sales would be considered a capital gain or loss.

See this IRS Tax Topic for more information.

[vj_nd]

Hello,

Thank you for looking into my request and answering my query.

I'm a little confused as if I searched on google as well as when I asked many folks in my company, they all said I need to pay taxes for the same. Can you please double-check on this?

One of the reference link: https://www.linkedin.com/pulse/pre-ipo-stock-taxes-phuc-ly

Regards,

Vijay

[PatriciaV]

Per the link you posted (which agrees with what @PattiF said), pre-IPO ISO's are not taxed until stock is sold. See screenshot below.