There are a few considerations depending on the specific arrangement and the federal and state tax laws that apply. See https://www.wikihow.com/Account-for-Stock-Based-Compensation#Making-Journal-Entries, specifically the section on employee recording of transactions
Generally you are likely to be liable to pay Income tax on the difference between the market price of the stock and any price you pay to your employer for the stock if you do not hold the stock for the period specified by the relevant state or federal legislation or the stock option plan, which applies which is usually 1-2 years. Income tax will be due at your marginal tax rate if you sell within this period. When you sell the stock you will be liable for capital gains tax on the difference between the market value of the stock when you received it and market value at the time of sale. I would use an Income account to record receiving the value of the stock. It would be wise to have a special category account to separate it either from income which is taxable and any non-taxable income as it is conditionally taxable on sale within the qualification period. This income account may need to be carried forward until the qualification period expires. If the stock is sold within the qualification period then it is included in the return for the year of sale as taxable income. Other wise the recording of the stock is as for any stock subject to capital gains.you will need to to know the price at acquisition and the price at sale. The above is general and not specific to your jurisdiction.. Yyou should consult a local accountant for specific advice. ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
