How do I figure the ESPP cost basis w/short & long term figures

[Floyboyd]

I sold ESPP stock (std 15% discount) and I'm having a problem figuring out the actual cost basis.  My 1099-B is showing me short term and long term sales.  Under the short term for date acquired it has "various", where as the long term it has an actual date.  I sold all my shares on the same date.  I've googled and I'm coming up with a way to calculate, but they keep needing the acquired date, and "various" is not helping.  Am I able to treat the two totals of the proceeds as just one total and figure from there?  I'm so confused.   

I tried to let Turbo Tax help me but I ended up having to fill out the info on the Form 3922 I received for both short and long term lines, and then they popped up my true cost which was not even close to what is on my W2 under DISQ.  So I'm not sure if they are figuring the cost for each line separately or what.   I guess the next question would be is if I let TT figure it out, am I supposed to enter both of my 3922's after I enter "each sale".  "Each" as I seem to have to separate from short and long term.  Background I just got into the stock purchase plan Jan of 22, and it goes for 6 months so I have two 3922's from my company with two lines each for the 6 month periods.  I sold all the stock I was able to on 8/1/23.

[ThomasM125]

I believe you mention that you researched a way to determine what the correct cost basis is. If so, you can enter the sale as a normal investment or stock sale without having to go through the ESPP routine.  For the short term sale, just pick an acquisition date that is less than one year from the sale date, that will give the sale the correct short term gain treatment. You can do something similar for the long term sale if the acquisition date isn't stated on the 1099-B form.

For the cost basis calculation, you need to factor in the income from the sale that is reported on your W-2 form. That often has to be added to the cost basis reported on the form 1099-B. Often the 1099-B form reports what you paid for the stock, but the remaining discount is included in your wages, so that has to get added to what you paid for the stock to determine the cost basis at time of sale.

[Floyboyd]

thanks for your reply.   I took your advice and just chose a date for the "various" date for the short term.  Now the problem I'm having is the adding back the Disq from my W2.  I just have one figure on there but then I have the short and long term sales to figure?  How do I know how much goes to each so I can figure the cost basis?  All the examples on the web I'm seeing are if you just have one sale line.  And again these were all sold same date.

[Floyboyd]

PS - I also tried not using the ESPP portion as you selected but then didn't know what to select - it came up with stock (non-employee), and some other things.  

[ThomasM125]

The discount per share would be about the same for all shares sold, assuming the discount percentage did not change. So, you could take the total discount listed on your W-2 form and divide it by the total number of shares sold and multiply that by the number of shares sold short-term and that would give you the discount income for the short term sales.

You can actually choose the ESPP option to enter the stock sale and on the screen that says Adjust your cost basis to ensure your best outcome choose the option that says I found my cost basis. Then, enter the cost listed on the 1099-B form plus the applicable income listed on your W-2 to arrive at the correct cost basis for the sale. That is all you need to enter.

[Turtle8158]

Hello,

I am trying to calculate my ESPP cost basis adjustment because my W2 includes ESPP.  I follow steps as below to calculate cost basis adjustment. But after I did all of these steps, there are zero cost basis adjustment.

Should I try to use "I found my adjusted cost basis" instead of "I can't find it and need help"?

       . select The cost basis is incorrect or missing on my 1099-

       . select I can't find it and need help

• select Next, we'll help you figure out your cost basis -> Continue
• select It's for an employer that has an existing W-2 on this return
• click on Sounds good
• select I got a discount -> type 15%
• select Yes, I received Form 3922 when I purchased these ESPP shares.
• Enter 3922 info
• Click Done.

[DavidD66]

If your W-2 includes income from the sale of ESPP shares you should indicate that you "found your adjusted cost basis."  You cost basis is the amount you actually paid for the shares, plus the amount that was included in your W-2 as ordinary income.  You can enter this adjusted amount as the cost basis by entering you sale with or without using the Employer Stock interview.   The amount included as ordinary income will depend on whether the sale was a qualifying disposition or not.  For more information on Employee Stock Purchase Plans see the following TurboTax Help Article:  Employee Stock Purchase Plans