Question

Entering proceeds from repurchase of Profits Interest Grant

Forum|Forum|4 years ago
March 10, 2022
1 reply
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Need advice on how to enter the proceeds from the shares repurchase of my profits interest grant that I received after I left my former employer. Since they are not a broker I will not be receiving a 1099B. Also wondering if I should be selecting ESPP, NQSO, ISO, RSU, RS, or Stock as the type of investment.

TurboTax Premier Online

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GeorgeM777

Can you clarify whether you received actual shares in connection with your profit interest. Also, the firm that gave you the profit interest, what type of firm was that, e.g. partnership, limited liability company, corporation.

@timboc1

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timboc1Author

The grant was in 2016 and was for a specific number of shares with consideration of "Participant's services" vesting over a 4 year period. When I left, the company performed a share repurchase so I received a check.

The firm is an LLC.

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RobertB4444

You won't enter this as any of the employee based stock transactions. This is entered as a straight sale of stock. They granted you these shares and you received no compensation as part of the transaction - it was just a bit of ownership in the company for being a good employee.

So the stock sale is issued as though you had received a 1099-B. The sale date is the date that they paid you. The purchase date is the date that you became fully vested. The amount of sale is the amount that they paid you and the cost basis is zero.

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