alkemyst
No Lifer
- Feb 13, 2001
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Originally posted by: TheBloodguard
Originally posted by: CPA
Originally posted by: TheBloodguard
Originally posted by: CPA
Originally posted by: TheBloodguard
Eaglekeeper,
A company I used to work for years ago ( that reorganized Chapter 11?) gave stock as compensation due to a lawsuit brought on by former employees. In 2007 they
paid for the shares by a check. It was a minor amount, under $400 total and I believe
they took taxes out.
Would this be filed under other income or Capital gains?
I don't recall receiving a 1099-B and I think they withheld taxes like a regular check but
I'll need to see if I can pull up the check at my bank to confirm this.
Thanks
If they treated this as a stock option, then it will be reported as W-2 wages. They probably withheld 28% for Fed, which is usual for stock option exercise type transactions. You may not receive a 1099-B, but possibly just a statement of exercise. You would then only report the fees/commissions as a Schedule D loss.
Thanks CPA ,
I checked my Bank and I received the full amount of shares X price. It sounds like
it would be okay to file the total amount as net income under 1040-D and just pay the tax
on it. No commissions, purchase price or offset on them.
I would just check with the payroll department to see if they included it on your W2.
did you pay anything for the stock? It doesn't sound like you did. I would question whether this is truly a Schedule D item or just normal income. I'm going to do a little more research.
Thanks for all the help.
I paid nothing for the stock...I received a couple hundred shares
as settlement in 2003(?), they then sent me a notice in 4/2007 that they
were buying the shares back at a set price. I sent in the shares and received a check
a month or so later. I did not receive a W-2 from them so far.
I would wait for the W2 prior to anything.