ESPP sale

[LittleMissAwesome]

Hi,

Three years after leaving the company, I sold shares of stock I purchased through the ESPP program (15% discount, lowest price of the quarter). I received a W2. What is the amount that the W2 reflects?

Thanks

LiMA

[DavidD66]

When you sell Employee Stock Purchase Plan (ESPP) shares at a gain, some or all of the gain is considered "employee compensation".  Because of the length of time you held the shares, your sale would be considered a qualifying disposition and the compensation amount would represent the lesser of:

• The gross sales price minus actual discounted price paid for the shares, or
• The per-share company discount times the number of shares - 15% of the lowest price of the quarter according to your question.

For additional information the following TurboTax Article:  Employee Stock Purchase Plans