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14101: Form 3922 - Transfer of Stock Acquired Under Employee Stock Purchase Plan

1040 Individual Generally

Where do I report Form 3922 - Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c)?

Generally, Form 3922 is issued for informational purposes only unless stock acquired through an employee stock purchase plan under section 423(c) is sold or otherwise disposed of. The information on Form 3922 may then be used to figure the basis for the gain or loss of the sale or disposition for the year in which the stock is sold or otherwise disposed of.

Per the Form 3922 Instructions for Employee:

"No income is recognized when you exercise an option under an employee stock purchase plan. However, you must recognize (report) gain or loss on your tax return for the year in which you sell or otherwise dispose of the stock. Keep this form and use it to figure the gain or loss."

For more information, see Publication 525, Taxable and Nontaxable Income.

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