I participated in a qualified employee stock purchase plan (ESPP) and I'm trying to figure out the cost basis of my stock for tax purposes.
When I enrolled for the ESPP the stock price was $29.44, after the six month period the price was $31.71. I got the shares at a 15% discount of the lower value, $25.02, and paid $6556.29 for 262 stocks.
I've had these stocks for two years (Qualified Disposition) and sold them for $38.03, for a total of $9964.02.
What will my cost basis be? When I look at my W2, I see them mention "Qualifying ESPP Disposition" with the total ordinary income on it at the top but no specific entry in any of the boxes of the W2.
My brokerage account shows the following for this transaction. Proceeds -- 9964.02 Acquisition cost -- 6556.29 Ordinary income recognized -- 1156.99
Would my cost basis be a sum of the "Acquisition cost + Ordinary income recognized", or "Acquisition cost - Ordinary income recognized" or just "Acquisition cost"?