ESPP shares transfer a disposition?

[dirtyangus]

What is the name of your state? Texas

Are there tax consequences for transfering ESPP qualified shares to another general brokerage account, even though shares have not been sold?

I recently received an audit notice that these shares were reported as sold. Ouch!

 

[efflandt]

Do you find anything on irs.gov allowing "transfer" of ESPP shares? They only discuss qualified and disqualified disposition.

Sounds like transferring shares out of the ESPP is considered a disposition, even if a like-kind trade, since an unrelated broker would not be able to properly account/report the ESPP end of it. You should find that your cost basis at your general broker is the closing stock price on date of transfer (unless any expenses were deducted). So future gain/loss would be related to that price.

I am not a tax expert (just do my own). But it looks like something you should have researched further before deciding if or how much to transfer each year. For example, I am gradually converting IRA to Roth annually to avoid bumping into a higher tax bracket (or eligibility limit).