I had a qualified ESPP account at Computershare. I used after-tax $ to purchase company stock at a discounted price (15% discount) between year 1991 – 1994 when I was an employee. Recently those shares were transferred in-kind from Computershare to Fidelity brokerage account. I don’t plan to sell them in my life time; it’s likely they will go to my heir.
Here are my tax questions:
1)Will I get any tax document from Computershare or Fidelity for the in-kind transfer I did this year (2024)? If yes, what form(s)?
2)My understanding is that any discount I received when I purchased those shares should be reported as ordinary income when the shares are sold. But what happens if I don’t sell them in my lifetime? How/when to report the discount that I received as ordinary income?
3)The capital gain/loss tax should be reported to IRS when the shares are sold. If I pass these ESPP shares to my heir, my heir will get a stepped-up basis and he will pay the tax based on the adjusted cost basis when he sells the shares. Correct?
Thanks in advance for any information that is offered.
Here are my tax questions:
1)Will I get any tax document from Computershare or Fidelity for the in-kind transfer I did this year (2024)? If yes, what form(s)?
2)My understanding is that any discount I received when I purchased those shares should be reported as ordinary income when the shares are sold. But what happens if I don’t sell them in my lifetime? How/when to report the discount that I received as ordinary income?
3)The capital gain/loss tax should be reported to IRS when the shares are sold. If I pass these ESPP shares to my heir, my heir will get a stepped-up basis and he will pay the tax based on the adjusted cost basis when he sells the shares. Correct?
Thanks in advance for any information that is offered.
Statistics: Posted by Rose999 — Sat Aug 31, 2024 1:28 pm — Replies 0 — Views 70