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The company I work for was bought by another company I

Customer Question
The company I work...

The company I work for was bought by another company I received 44,000 for the stock I had how does that get taxed

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I'm filling out my taxes but don't know where to put that or is there an option I have so I don't pay so much tax

Accountant's Assistant: Is there anything else the Accountant should be aware of?

No I earned 92,000 and my husband 42,000.

Submitted: 3 months ago.Category: Tax
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3/17/2018
Tax Professional: Lev, Tax Advisor replied 3 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,973
Experience: Taxes, Immigration, Labor Relations
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You will need to know

- when stocks were purchased?

- what did you pay for shares or what amount used for that purchase was reported as your wages?

- if you held stocks inside qualified retirement account?

You will report the sale transaction on form 8949 and will calculate the gain.

ONLY gain will be taxable.

If that is a long term gain - it will be taxed at reduced rate not more than 15% on the gain (not full amount)

Plus state income tax depending where you live.

Please verify if that amount is reported on your W2 form?

Let me know if you need any further help.

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Customer reply replied 3 months ago
It was stock options and it was not reported in the w2
Tax Professional: Lev, Tax Advisor replied 3 months ago

In general compensation fro stock options - that should be classified as wages and reported on W2 form in box 1 and in box 12.

If not - probably because the payment was made by a new company,we may classify that as the same of stock option rights.

That is not actual stock option exercise...

I still suggest to report that as a sale transaction on form 8949 - long term or short term - depending where options were granted.

As your basis is likely zero - the total amount will be your gain.

Did you receive or expect to receive any reporting form for that payment?

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Customer reply replied 3 months ago
All I received was a wire transfer
Tax Professional: Lev, Tax Advisor replied 3 months ago

That makes NO difference HOW the actual payment was make.

If there were no reporting - we may handle that income as I suggested above.

But if there were any reporting to the IRS - the IRS may expect it to be reported in certain way.

So we will need to consider that.

Was that amount transferred ion 2017 or in 2018?

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Customer reply replied 3 months ago
2017 44,000 and another payment of 175 in 2018
Tax Professional: Lev, Tax Advisor replied 3 months ago

You will be only concerned about 2017 payment.

That will be on your 2017 tax return.

The other payment of 175 in 2018 - you will handle on your 2018 tax return.

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Tax Professional: Lev, Tax Advisor replied 3 months ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all Social Security / Tax related issues
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