I am having difficulty determining the cost/basis to report on Schedule D for the sale of employee shares of stock through an ESPP. (Unfortunately, I am using ProSeries Professional.) Here are the facts:
1099-B (4 Transactions - 356 Shares)
$80,656 Net Proceeds
$39,859 Cost or Other Basis
Short-Term Covered Securities Basis IS reported to the IRS
$56,395 Code V
Is Code V what should be reported? Or is it 1099-B cost PLUS Code V? My client believes that he has paid all tax associated with the sale and remembers hearing other employees talking about “double-taxation” several years ago because the compensation element was being excluded from cost/basis.
Any insight would be GREATLY appreciated!