How do I report ESPP exercises I have no records of?

February 26, 2007

Date:   Thu, 25 Jan 2007
From:   Sandra

I had a few thousand shares of stock from stock options, ESPPs and reinvested stock dividends. I sold all during 2006.

In assembling the basis information for reporting the sales, I have a few hundred shares for which I have no records.

How should I report them?


Date:   Wed, 31 Jan 2007

Hello Sandra,

You might want to play detective a little longer and hunt down those records.

If you can establish that you had the shares more than one year (and the shares aren’t disqualifying dispositions of ISO shares or ESPP shares), you can just report the total sale proceeds as long-term capital gains, with zero tax basis.

Good luck!

Mike Gray

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