Company buyback of private shares

Hi All,

Hoping you can help me with this: In 2017 I purchased shares in the company I worked at, at the time. In 2020, I sold some of those shares back to the company. This is a private company. How do I report this income, and what forms do I need from the company? Thanks a lot!

posted

if this was a direct purchase - no restricted stock offering, no incentive stock option, or other equivalent stock purchase (ask the company if you are not sure) then you report the sale as a long-term capital gain on form 8949 -schedule d. all you need is the dates acquired and sold and the purchase and sales price. for type it's type F - long-term where neither the proceeds nor cost basis were reported to the IRS. entries are through investment income / stocks mutual funds. if the company handled the sale it's likely you got no forms. if the sale was handled through a broker it's likely you need more info which can only come from the company