ESPP: treatment of shares sold for taxes

Forum|Forum|2 years ago
March 20, 2024
1 reply
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My question is how to treat the ESPP shares sold by the company for taxes.

For example, I purchased 23.57 shares. The company then sold 1.07 shares for taxes and refunded me the value of 0.5 share balance leaving me with 22 whole shares. I entered the sale of these 22 shares in TT and am satisfied with the results. What do I do about the 1.07 shares the company sold to cover taxes? How to enter in TT?

ThomasM125

You just need to report the sale and cost information reported on your Form 1099-B for the year. The shares sold to pay taxes should be included with the sales listed on your Form 1099-B in the year they were sold. The discount on the shares sold will be reported on your W-2 form in box 1. You may need to adjust the cost basis reported on your Form 1099-B to include the discount, as often the 1099-B form will just report what you paid for the shares and not include the discount.

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