Discussion Archives:ESOP NUA pls chk thinking

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Discussion Forum Index --> Advanced Tax Questions --> ESOP NUA pls chk thinking


Discussion Forum Index --> Tax Questions --> ESOP NUA pls chk thinking

Lorikins (talk|edits) said:

14 May 2010
Hi All -

I just need someone smart to check my thinking on this:

1099R Total Distribution on ESOP
Employee 30 years
Box 2a Taxable Amount $10,000
Box 6 Net Unrealized Appreciation in EE securities $100,000
Taxable amount of $10,000 taxed as ordinary income in 2009

New basis for NUA $10 (NUA/taxed income = 100,000/10,000= $10) So $10 is the basis for future sales and gain/loss will be reported as l/t cap gain.

Thank you all for any input.

Lorikins (talk|edits) said:

14 May 2010
Actually I think the $10 should be 10%. 10% of is basis. Makes more sense when I'm working it through.
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