WITAXLADY Posted March 15, 2016 Report Share Posted March 15, 2016 so every year - employee gets stocks,,, added into W-2.. so value is $50,000 basis is $20,000 so gain is $30,000 and he sells it - so that is taxable income even tho it was in W-2? seems like a lot of money already taxed? Is this how it is treated - first one and probably will never see again- tryin to get tax implication down. Thank you Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 15, 2016 Report Share Posted March 15, 2016 If it showed up in his W-2, he already paid ordinary income tax rates on it, and you add it to any out-of-pocket cost to get his basis. Are you saying he paid $20,000 cash plus $30,000 was on his W-2? Then, his basis is $50,000. 3 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 19, 2016 Author Report Share Posted March 19, 2016 i think so.. and the paper shows $50,000 but I did not understand what is was showing - that makes more sense - except -I thought he got it as part of a bonus - so it was worth $50,000 but he did not get that much at all! Quote Link to comment Share on other sites More sharing options...
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