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I was given company stock. Company ask to buy it from me for…

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I was given company...

I was given company stock. Company ask to buy it from me for $20,000.00. I took them up. do I or how do I claim this on my taxes? Got a K1 form but it doesn't seem like what I should use

Accountant's Assistant: The Accountant will know how to help. Is there anything else important you think the Accountant should know?

Don't think so, except I was given stocks over 5 years ago.

Submitted: 5 months ago.Category: Tax
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Answered in 13 minutes by:
3/21/2018
Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,387
Experience: 15years with H & R Block. Divisional leader, Instructor
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Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

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Tax Professional: Robin D., Senior Tax Advisor 4 replied 5 months ago

Was this given to you by the company as an employee? Maybe a Stock Option.

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Customer reply replied 4 months ago
was given to me as an employee. Was told that it made me part owner (like 5%) and was a reward for being a great employee for the time I had been with company, about 10 years at the time stock was given.
Tax Professional: Robin D., Senior Tax Advisor 4 replied 4 months ago

If you received a K1 you must report the amounts that are on the K1 on your return. If you just secured a blank K1 throw it away. That form is sent to you from the company it is not filled out by you.

If you sold the stock then you will report that on form 8949.

If you were not taxed on the valued of the stock when you received it then you will pay tax on the full amount of the sale now.

Please let me know if you need more information.
If not then please scroll up to see the STARS to rate so I am credited.

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