How to enter ESPP stock sale in Turbo Tax when I have a 1099-B and transaction list and no Form 3922.

[jjwe30]

I have entered the 1099-B information, selected Yes, it was acquired through an employee stock  and Yes for all stock in this account was acquired through an employee stock plan, selected Employee Stock Plan, choose the dob and filled in number of shares that was on the 1099-B. What do I do next? Select walk me through adding more information or I have all my info (like adjusted basis) and can enter my own?

My transaction list has 7 transactions on it and within each transaction there are multiple lines – one for each Acquisition date. Each line has an execution date (same for all lines), sales price (same for all lines), quantity, cost basis, and acquisition date. For some of the lines there is also an adjusted cost basis and an adjusted acquisition date. Do I need to enter all these individual lines?

[AmyC]

1. I would suggest walk me through since you are new to this. You will want to follow the steps in How do I enter Employee Stock Purchase Plan (ESPP) sales in TurboTax?

2. No. The detail statement is not entered separately but will help you input the necessary information.

When finished, you will see ESPP Sale Summary

[jjwe31]

Thanks for the reply. That was very helpful. I have now selected the option “walk me through adding information. Please walkthrough with me how to use the transaction list I have to populate the remaining screens.

• Tell Us about your ESPP discount Screen – I selected I didn’t get discount
• Did I buy all this stock at the same time Yes or No – On my transaction report, each transaction has an Id and multiple lines beneath it. Each of the lines has an acquisition date and they are all different. Does this mean I should select No ( multiple purchase lots? If I say, no, TurboTax goes to a screen that asks if I want to add another lot. Do I need to add a lot  for each separate acquisition date under the transaction ID in my transaction report?
• If I select add a lot , how do I populate the Lets get some purchase info about this ESPP purchase. Does this come from the individual lines in my transaction report? Each line has an execution date (same for all lines), a sales price (same for all lines), a quantity, a cost basis, and an acquisition date. For some of the lines there is also an adjusted cost basis and an adjusted acquisition date. Would
  • Number shares bought = transaction ID line quantity
  • First day of offering = not sure what to put here. The hire date or assume annual period starting Jan 1?
  • Date purchased = transaction ID line acquisition date – I have several adjusted acquisition dates - what do I do with them? They look like they all are at the beginning of a month
  • Market Price on grant date per share = not sure what to put here. The only dollars that are on the transaction report are sales price, cost basis and an adjusted cost basis (for some lines only)
  • Market price on purchase date= not sure what to put here. The only dollars are that are on the transaction report are sales price, cost basis and an adjusted cost basis (for some lines only)
  • Price, you paid per share = not sure what to put here. Is this calculated from the two market prices.  The only dollars that I have in the transaction report are sales price, a cost basis and an adjusted cost basis (for some lines only)
  • Purchase commissions – not applicable

Appreciate your help!!

[GeorgeM777]

Your questions have been italicized below.  Our response follows each question.

Does this mean I should select No ( multiple purchase lots? If I say, no, TurboTax goes to a screen that asks if I want to add another lot. Do I need to add a lot  for each separate acquisition date under the transaction ID in my transaction report?  

Correct, select no as it appears that your ESPP occurred over several dates.  Yes, selecting that your purchases were effected in multiple lots will require that you treat each lot as a separate purchase, with its own purchase price.  

If I select add a lot , how do I populate the Lets get some purchase info about this ESPP purchase. Does this come from the individual lines in my transaction report? 

Yes, it seems your transaction report has the majority of the information you will need.  However, you may have to refer to your company's ESPP documents to determine other information that you must enter into TurboTax.

Would Number shares bought = transaction ID line quantity

Probably, without the benefit of being able to actually see your transaction report, the reference to quantity is probably the number of shares you purchased through your company's ESPP.

First day of offering = not sure what to put here. The hire date or assume annual period starting Jan 1?

Here is where you may need to look beyond your transaction report to determine the nature of your employer's ESPP.  The offering period is usually a specific time period during which employees are permitted to purchase shares through the company's ESPP.  

Date purchased = transaction ID line acquisition date – I have several adjusted acquisition dates - what do I do with them? They look like they all are at the beginning of a month

The adjusted purchase date is probably the date you need to use when entering purchase date information.  You can confirm how purchases are effected through your company's ESPP by reviewing its quarterly report, Form 10-Q.  Check your company's website and see if they post their quarterly reports.  If not, use Google and search using the name of your company and Form 10-Q.  Select the Form 10-Q that precedes your purchases.  Then review the Form 10-Q to find out more information about your company's ESPP. 

Market Price on grant date per share = not sure what to put here. The only dollars that are on the transaction report are sales price, cost basis and an adjusted cost basis (for some lines only)

The grant date may likely be the beginning of the offering period.  Your transaction report may not contain this information.  In addition to the research methods discussed previously, you might also consider speaking with your HR department or Investor Relations or similar department.

Market price on purchase date= not sure what to put here. The only dollars are that are on the transaction report are sales price, cost basis and an adjusted cost basis (for some lines only)

The market price may only matter if you received a discount and you mentioned earlier that you did not receive a discount.  Not receiving a discount is rare as companies typically offer a discount of 15%.  You might want to double check with your company to make sure their ESPP does not include a discount for employees.   If you know that you did not receive a discount, then you probably can enter the price you paid per share as the market price.  

Price, you paid per share = not sure what to put here. Is this calculated from the two market prices.  The only dollars that I have in the transaction report are sales price, a cost basis and an adjusted cost basis (for some lines only)

Just divide your cost basis by the number of shares you purchased.  The resulting number will be the price you paid per share.  

Purchase commissions – not applicable

No response is necessary. 

@jjwe31