itonewbie
Level 15

What kind of equity compensation plan?  Restricted Stocks, Restricted Stock Units, ISO, NQSO, etc.? 

Check the grant, exercise, and supplemental documents your client should have received.  Generally, your client will have a basis to the extent the option price was paid and the bargain element was already subject to tax as compensation as required by law, depending on the type of plan it is.

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