How do I report the distribution of my ESPP shares?

October 9, 2014

Date:   18 Feb 2007
From:   Bruno

I am in an ESPP. I still participate and was invited to tender shares at $32.50 during 2006. I’ve been in the ESPP for over two years and decided to tender all shares. I took a cash distribution. Do I need to report the entire amount of the distribution as taxable income or do I report only the capital gain or loss from the sale?


Date:   28 Feb 2007

Hello Bruno,

The reporting requirements for ESPPs are involved, and you might need some help preparing your income tax returns this year. Although the gross receipts are not your income amount, you probably have made a disqualifying disposition of some of your ESPP shares, which would result in additional compensation income that should have been included on your W-2 form.

Good luck!

Mike Gray

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