I have a question about my 1099-B form regarding ESPP sales. My company allows me to buy shares at a 15% discount through an ESPP program. I buy-and-hold for 1 year 1 day so my sales are taxed at long-term rates. My question is about my 1099-B cost basis.
- Looking at my 1099-B form, the "Net Proceeds" is checked at the top for Reported to IRS.
- Box 1d (Proceeds) has $3,555
- Box 1e (Cost or other basis) has $3,048
- Box 2 says Long Term
This implies a total of $507 capital gains.
However, the next page of the form has line-item details provided for information only. There, it says:
- Proceeds: $3,555
- Cost or other basis: $3,582
- Long Term
- Total loss: (27).
- Ordinary Income (USD): $534
- ^^^^ where did this number come from, and what does it represent?
My question is which cost basis is the IRS aware of -- the one before the 15% discount (which seems to be the one shown in the line-item detail, or the one after the 15% discount which seems to be at the actual 1099-B form).