Wal-Mart Stock Basis

[Jiggers]

Employee of Wal-Mart participates in their stock purchase plan.

She has $20 withheld out of each pay check to purchase the stock.
Wal-Mart contributes $3.

Is her stock basis $20 or $23?

I asked the employee and she is doing good just to know where she lives!

[rosieea]

Is the $3 included in her wages or is the contribution pre-tax?

[Jiggers]

Jiggers

The client has no clue.

I looked at her paycheck and it appears that the $3 is added in to her paycheck gross and then $3 is deducted so that there is no effect on her salary. Her W-2 then appears to include the $3 as compensation.

I answered my own question. The $3 is added to her stock basis.

Thanks for the quick reply.

[Safire]

Her basis is only what she buys and the dividend reinvestment. Watch for that too, it's not much but may add a few dollars to her basis. What the company buys for her is not included in basis.

[Matt Sova]

basis

The amount put in by Wal Mart is basis. It is added to their taxable wages then deducted after taxes.

[Jiggers]

Wal-Mart Stock Basis

Matt,
Thanks. I had confirmed that it is added to the paycheck and it is included in W-2.

[Unregistered]

Cost base of WalMart stock

The cost of the Walmart stock is not the $20. per pay period or $23, it is the cost of the stock when purchased. It may take 1 1/2 pay periods to buy 1 share. That would be $32.50 per share????????????

[S T]

Wal-Mart Employees

Wal-Mart provides an annual report to the employee, showing the purchase amounts and dates.

Sandy

[Donanita]

Statements

You will need their statements from all years to get their stock basis as it is considered fifo.

[Ken]

stock basis

I have just about come to the conclusion that it is almost impossible to determine a persons basis in stock if they have had it for a few years, unless you spend your whole tax season just working on one tax return. For the life of me I cant understand all the splits and dividind re-investments and stuff that goes on with stock. I have been doing taxes for a long time and this is one area where I could just scream ever time someone brings me this stuff. And they never know anything about it themselvs.
I had one man one time that had invested in ma bell stock when he first went to work with them 30 years ago and I was suppose to figure his basis 30 years later? youve got to be kidding.
Now!! I've vented.