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Level 3
January 27, 2021
Question

Disqualifying disposition of stocks purchased under Employee Stock Purchase Plan

  • January 27, 2021
  • 1 reply
  • 14 views

How do you report income from  disqualifying disposition included in W-2  as part of Wages  (Box 1) and also on 1099 B (Proceeds  from Broker and Barter Exchange Transactions)  so that the income is not double tax? How can you cancel one income out? 

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1 reply

itonewbie
Level 15
January 27, 2021

The basis should have been adjusted for the compensation recognized.  The custodian brokerage should have picked that up.  Check the details and follow the money.

---------------------------------------------------------------------------------Still an AllStar