How do I enter an ESPP stock sale that involves multiple lots that include stock that has split (and split different amount of times) without using the guided path.

[Matilda]

I am entering one sale of espp stock that includes 5 lots where the stock has split different amounts for each lot.  I have my information and do not want to use the "guide me" but that seems to be the only way to enter multiple lots for one sale.  The guided method does not allow for splits - so I would have to enter that I bought more shares and adjust the price per share for each lot.  For example if I purchased 10 shares at $25 per share and it split twice I would put that I purchased 40 shares at $6.25 per share.  The numbers work but it is not accurate to say that is what I did at purchase.  I would rather not enter all that stuff and just enter the adjusted gain and compensation income that I have calculated.  when i select to enter my own information TT does not allow more than one lot.The only way I see to do this is to enter each lot as if it were a separate sale on the 1099B so the end result is the same but it does not match exactly what is on the 1099B.

[TomYoung · Accepted solution]

"The numbers work but it is not accurate to say that is what I did at purchase."

No, that's not correct.  The convention is that when a stock splits that split ripples backwards in history and everything gets restated "as if" the split preceded those historical transactions.  If you have everything properly stated at this point - it does seem like you've made the appropriate adjustments - then I'd leave it "as is" since the basis and the compensation entries, (once you've passed through the "Your employee stock plan results" page) are correct.  That's your REAL obligation as a taxpayer - to correctly report your income.

If you want to not use the ESPP step by step process and have all the information you need, then delete the trades and re-enter them.  There's NO NEED to enter lot-level detail when you report your sales, you just need to have your summary numbers accurate.  So you should be able to enter a sale and use the word "various" in the date acquired field.  If the broker is NOT reporting basis to the IRS you simply enter the correct total basis and the sale is properly reported.  If the broker IS reporting basis to the IRS and that basis is incorrect, (reporting only your out of pocket cost), then enter the 1099-B as it reads, click on the blue "I'll enter additional info" button and enter the correct basis on the following screen.

Of course if not all the compensation created by the sale on your W-2 then you need to go another route in order to get that compensation reported correctly.  One way is this:

Starting the "Miscellaneous Income, 1099-A, 11099-C" interview.
Starting the "Other income not already reported on a Form W-2 or Form 1099" interview.
Answering "Yes" on the "Other Wages Received" page.
Entering $0 on the "Wages Earned as a Household Employee" page.
Entering $0 on the "Sick or Disability Pay" page.
Answering "Yes" on the "Any Other Earned Income" page.
Ticking "Other on the "Enter Source of Other Earned Income" page.
Entering a description and an amount on the "Any Other Earned Income" page.

Tom Young

[Matilda]

Thank You.  I will just enter the total as it is on the 1099B, put various for date, and add in the correct basis (none reported).  We are retired and did not receive any W2 so thank you for the last part of your answer so I can add the bargain element to income.

[Matilda]

I entered the total.  Now I have to mail my information in.  Is there a problem with just entering the lots as separate sales as if they were separate on the 1099B (even though it was really one sale).  The total would be the same.  I would not have to mail anything in then.

[TomYoung]

Why do you have to mail your information in?

If you told TurboTax that you were going to enter "summery" information then you'd get that prompt  That's for a situation where you have hundreds and hundreds, maybe thousands of sales, so you'll enter a summary of proceeds and a summary of cost basis, and then mail in something that substitutes for From 8949.  (Many 1099-Bs are set up like that these days).

If you told the broker "sell 100 shares of Company X stock" and the broker did that, maybe breaking out lot information for your benefit, that's still "one" sale.  In that case you're NOT entering summary information, you simply entering one trade.  You don't have to slavishly follow the format of the 1099-B, you simply have to report each separate sale and report each separate sale correctly.

It sounds to me like you took TurboTax's question too literally since you were looking at a lot of detail that made up ONE sale.  Assuming you DON'T have hundreds and hundreds of trades simply enter the individual sales that you do have using "various" for the date acquired and your own worksheets for the cost basis to use, (presumably encompassing several lots and some compensation income), and that's fine.