Hi,
I am trying to have TT calculate adjustment for ESPP sale. This is a "qualifying disposition" and "Long Term gain."
Here are the details I entered from 3922 on TT premier, 2023 (Mac download version)
"
Let's get some purchase info about this ESPP sale from Form 3922
We only need info from boxes 1 to 6
Box 1 - Date option granted
06/01/2018
Box 2 - Date option exercised
11/30/2018
Box 3 - Fair market value - grant date
$69.7100
Box 4 - Fair market value - exercise date
$66.8700
Box 5 - Exercise price paid per share
$56.84
Box 6 - Number of shares transferred
217.0000
Purchase commission or fees paid
$0.00
This has 15% discount on the lower of FMV grant date and exercise date.
(Broker calculated cost basis is: 12,334.17)
With this TT is calculates adjustment to cost basis as: -$2,268.83 and adding that to ordinary income.
However my understanding is that it should calculate the adjustment as: (66.87 - 56.84) = 10.03 per share
with a total of 10.03 * 217 = 2176.51.
The Employee Stock Transaction worksheet shows how it does it and it seems to take "discount as if exercise on grant date" value for "qualifying"
Can somebody please comment on this? Is my understanding incorrect?
