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How to report acceptance of company shares if I have not sold them during the tax year

I was granted company shares in frames of annual long-term incentive plan. The total cost of shares granted to me is around $26k. At the time of vesting the company sold a portion of shares to pay taxes (about $8k). The total cost of shares granted to me was reported by the company as imputed outcome, both taxes and stock were reflected on my W-2. I also received an equivalent of form 1099-B stating the cost of shares sold to cover taxes as short-term proceed (around $8k) and initial cash paid for the security as a cost (around &8k).

I have not sold any shares this year. My question is should I report the acceptance of the shares in any form additionally to W-2? If yes, what should I report as a proceed (total $26k or 26 minus 8)? What should be reported as a cost? 

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1 Reply
MarilynG1
Expert Alumni

How to report acceptance of company shares if I have not sold them during the tax year

Your cost basis is what you paid for the shares upon vesting, plus the amount you were taxed on your W-2 (discount).  Divide the amount you were taxed on your W-2 by the number of shares that vested.

 

Add that amount to the Exercise Price (you may have Form 3922/24 stating this price), for your Cost Basis per share.  If you only have one 1099-B for shares sold for taxes, you should end up with a small gain or loss. In TurboTax, you can enter this this as a regular stock sale, but you may need to check the box to indicate that 'cost basis is missing or incorrect' so you can enter the correct cost basis, if it is incorrect on your 1099-B. 

 

Here's more info on Employee Stock Purchase Plans.

 

@elenluni 

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