ESPP should I correct Cost basis to Adjusted Cost basis in ETrade supplement?

[johnsantaclara2]

While entering RSU and ESPP sales from ETrade in TurboTax Premier :

1) RSUs: Example: I sold 251 shares. Cost basis which was 0 in ETrade supplement as well as TurboTax which was 0 and prompted me to fix error. So I entered Adjusted Cost basis in that field from ETrade supplement.

2) ESPP: Example: I sold 96 shares: ETrade supplement shows Cost basis as $11,874.43 and Adjusted Cost basis as $13,969.92. Turbo Tax shows cost basis as $11,874.43. Should I change that to $13,969.92?

[ThomasM125]

For the ESPP shares in part 2, I believe the supplement is reporting what you paid for the shares, which would not include the discount that is reported on your W-2 form as wages in box 1. The $13,969.92 adjusted cost basis may include the discount, and if so you should use that as the adjusted cost basis.

The discount would be the difference between the market value of the stock and what you paid for it times the number of shares you sold. You may need to add that to the cost basis reported on the Form 1099-B to arrive at the correct adjusted cost basis. You may be able to calculate that amount, especially if you have the Form 3922 that is associated with the ESPP stock sale. There is also a routine in TurboTax that will help you calculate it, but if you are confident the number on the brokers supplemental statement is accurate, you can go with that. 

In TurboTax, when you enter the investment sales, indicate that you sold employee stock and choose the enter sales one by one option. Indicate that your cost basis is missing or incorrect and that you need help determining the cost basis. You will be able to enter your Form 3922 information to determine your adjusted cost basis.