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How to enter future ESPP sales?

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(@maxedison)
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Joined: 5 months ago
Posts: 1
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How should I enter future ESPP sales? My current approach is to add them in the "Windfall" section, and indicate that they are *not* taxable since I assume that will just tax them as normal income. Instead, I'm inputting the amount *after* the expected taxation (assuming to change to the stock price).



   
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(@smatthews51)
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Joined: 5 years ago
Posts: 1178
 

@maxedison I suppose your method can work if you know what your tax rate will be in the year in which you sell the stock shares; however, I'd recommend simply specifying the expected appreciated value of the stocks and check the taxable box. Pralana will add the proceeds from the sale to your income and your AGI in that year, and the taxes will be calculated in accordance with your actual tax rate in that year.

Stuart



   
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