The basis = market price X # of shares on your purchase day.
Your basis = 40*200=8000
e.g. you actually paid for $10/sh while mkt price is $40.
your actual cost = 200*10=2000
w-2 income = (40-10)X200=6000, reported in your box 1 of w-2. in another word, 6000 is not your basis. it's
your W-2 income earned from your purchase discount.
you sold it later for more than $40/shr, say $45/shr, your proceeds is 45*200=9000.
your capital gain in this case = (45-40)*200=1000, which you need to report on form
8494 of sch D.
8494 of sch D.
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I am not a tax professional. reference only.
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