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Returning Member
posted Feb 15, 2025 11:46:02 AM

Looking for advice related to ESPP sales of IBM after the Kyndryl spin off. The 1099-B makes no mention of the ordinary income from the purchase discount How Do I enter?

It appears to me that the covered shares have had the basis adjusted by approx 5% and I don't know if that was adjusted for the discount when purchased or if that is due to the kyndryl spin off. I don't know where Turbotax expects me to enter any "ordinary income" that is not mentioned what so ever on the 1099-B but is in the additional pages they include to show the proceeds and basis of each block I bought from each paycheck. I do not believe IBM counted the discount at the time I bought the shares as income , bought from 2004-2012. Appreciate any advice.

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1 Replies
Returning Member
Mar 9, 2025 12:36:48 PM

Replying to my own post to clarify some things.   The covered shares were reported with the including ordinary income from the purchase discount added in , as appropriate.   For the uncovered shares I sold, I can do this myself when calculating the appropriate basis to use for those.    I have to adjust both of these basis values DOWN 4.2% from the Kyndryl spin off (and when I sell those i assume i have the face value they were given to me as  to use as basis ) .   So ok. That gets my 1099-B in good shape.

 

What I fail to see is how I enter the ordinary income from the discount as income somewhere.   I don't have a W2 from ibm for it.  I have not been their employee for nearly 10 years.  

 

I don't know where in TurboTax to toss this value in .   Hopeful someone can offer some how to .