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DEBORAH F
When I sell the stock I bought through an "employee stock purchase plan", how do I report the gain?
When my friend worked at Walmart, he had money taken out of his paycheck to buy company stock. The company matched 15% of his purchase. Now, he's selling all the stock. The basis in the stock he paid for is clear, but does he use zero basis for the stock the company purchased for him? or does he have to report the fair market value of the stock when purchased as ordinary income and then use that same value as his basis? I've heard both answers and can't find anything on irs.gov. If you could cite your reference, I'd be very greatful.
2 AnswersUnited States1 decade ago