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- Re: NUA capital gain
NUA capital gain
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gabjo00
Level 3
05-15-2024
11:05 AM
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Hi Colleagues,
Client has a 1099-R for shares exercised from her ESPP in her IRA from a previous employer. The 1099-R has a value in Box 1, a value in box 2 and a value in box 6. The sum of boxes 2 and 6 equal box 1. This client also has a 1099-B with no cost basis.
Am I correct that box 2 is taxed as ordinary income and box 6 is the long term capital gain on this exercise. Therefore, I will back-in to the adjusted cost basis so that the NUA in box 6 is on schedule D as long term capital gain?
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qbteachmt
Level 15
05-15-2024
12:00 PM
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There are a lot of moving parts for this. I found an article that does a great job of breaking it out into parts:
https://fitaxguy.com/tax-return-reporting-for-net-unrealized-appreciation/
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