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March 31, 2020
Question

I sold stock in 9 I bough w/ ESPP, 1 2 1 match before leaving in 09, the stock plan managed by Morgan Stanley Smith Barney was moved to Computershare? no record of price.

  • March 31, 2020
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Since I do not work for and no longer a member of ESPP for years, how do I report the sale on my return for stock that was purchased over time and move to another management firm later after leaving employment?

1 reply

March 31, 2020

You can deduct the cost of the stock and any income you were credited with from a discount on it's purchase by including that in the cost basis reported on the sale. Often the form 1099-B reporting the sale will not list the correct cost basis. If this applies to you, you should enter the cost basis as reported to you, then enter the correct basis as an adjustment, by using the "I'll enter additional information on my own" option on the screen where you enter the form 1099-B information:

 

 

If you don't know what the cost basis is, you will have to do some research by looking at previous year W-2 statements to find any income from purchase discounts, and looking up stock prices online to come up with an estimate of what the basis is. You can also request a printout of activity from your broker or employer if available.

 

It is also acceptable to leave the cost basis blank, but will likely result in a higher income tax then what is necessary.

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