Hi All, i contributed to espp, and sold the stocks with some gains (excluding the discount). I didn’t get any tax statement for this in fidelity. Do they report this on our w2 ? I got form 3922, do i need to calculate gains based on fhat looking at the hisotry in fidety? #microsoft #paypal #tax TC: 140k YoE: ~1 year
No, the brokerage reports cost basis as the 15% discounted price. When u sell, your company withholds income tax on the 15% discount which is reported on W2. So u need to adjust brokerage cost basis upwards by 15%
So no need of paying taxes for that 15% (discounted price on ESPP) ? Only need to pay for the gains (other than 15%) ?
Yes, discount is in w2, you need to adjust cost base
Could you explain a little on what does it mean to adjust the cost base ? Isn’t the tax document that we pull from brokerage already populated with that information?