Question

My son worked for a start up company they gave him shares in the company. When he left them they bought the shares back for a nominal fee of $5000. How do I report this?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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They did not give him a form for taxes they just told him to add as income as he would have to pay capital gains tax on it. It does not seem to fit in any category on TurboTax as I don’t have the number if shares and the value. Please help

TurboTax Premier Online

K

KarenW

Employee

When they gave him the shares of stock when he started, did they include the stock in his W-2 as ordinary income? If so that would be his basis in the stock sale. Report the $5,000 as proceeds from a stock sale. Acquired date is the date the stock was given to him. Cost basis is the amount that they included in his W-2 Box 1. Could be zero. Sale date would be when they gave him the $5,000.

Hope this helps.