Employee Stock Sold, Implications?

[sungod916]

What is the name of your state? California

Hello All.

My employer granted me some stock @ 6.25 a share.
I sold it @ about 11.00

Of course when I sold it, they took the total value of the stock, and subtracted the cost of the original grant, then the rest was given to me in a form of a check.
There were no taxes taken out of the check since I put something on file with them (W-9?).

It was about 187 shares.
My question is what do I report it as on my taxes? Capital gains? I have no clue. The only thing I have received thus far is a 1099-B which shows the total value of the stock sold, but doesn't include what they company took back.

Any help is appreciated.

Thanks.

 

[LibertyTaxTN]

The difference of the stock sales price and the amount they "took back" should probably have been included on your W-2 (as you are an employee) and been subject to employment taxes. Barring that, as it's reported, I'd use the amount they withheld as your Basis in the stock and the amount on the 1099-B as the sales price on Schedule D of the 1040. The difference (what you recieved) would be taxable as a Capitol Gain at a lower rate than your normal tax rate (compute on Sch D page 2).

 

[sungod916]

I didn't receive a check from my employer for the stock directly, I received it directly from Smith & Barney, so I don't think it's on my W-2.


I understand the amounts and stuff on my 1099-B.
So my gross proceeds minus the grant cost would be what I report on schedule-D right?

Another question... since it was employee stock I am not sure how long I held it, should I report as long term or short term capital gains?

Thanks soo much for the help!