Tracking Employee Stock Plans

Tracking an employee stock option grant (ESOG)

Before creating an employee stock option grant in Quicken, be sure to set up a separate account to track your options.

Click a link below for an overview of the topics covered in this section.

  • Recording an employee stock option grant
    Employee stock options require that you track both the exercise price (the price at which you buy) and the actual market value of the security. You enter the exercise price when you set up your employee stock option grant. When you exercise your options, Quicken asks you for the market value and calculates your gain.
  • Exercising an employee stock option
    When you exercise an employee stock option, Quicken adds an Exercise transaction to your investment transaction list. This "creates" the cash that makes up the difference between the stock's market value and your discounted purchase price. The Exercise transaction corresponds to a transaction typically done at your brokerage that does not appear on your statement. In this way, Quicken accurately tracks your true cost basis. If you download transactions from your brokerage, be aware that they may use different methods for tracking your discounted purchase price.
  • Repricing an employee stock option grant
    Reprice Employee Stock Options if you have already created an employee stock option grant in Quicken and your employer has subsequently changed the exercise price of your options.
  • Editing an employee stock option grant
    Edit an employee stock option grant if you need to change the expiration date or grant number of an employee stock option grant that you have already created in Quicken.

Tracking an employee stock purchase plan (ESPP)

Click a link below for an overview of the topics covered in this section.

  • Recording the purchase of ESPP shares
    When you buy ESPP shares or create an ESPP security, Quicken adds a new security to your Quicken Security List that includes the same name as your company's security name, but with the suffix "-ESPP" appended to it. This special ESPP security will appear in your investment transaction list, Portfolio, and Security Detail View for any ESPP transactions. If you also have holdings of your employer's company stock that were not purchased through an ESPP plan, those transactions and the security's price history will remain unchanged. Quicken does this so that it can track transactions at your discounted ESPP purchase price separately from those of the parent security, without artificially reducing price history by recording your discount in the security's price history.
  • Recording a sale of ESPP shares
    Because ESPP shares are purchased at a discount, there are special tax implications. When you sell, you may be liable for income tax on the amount of your discount, as well as for capital gains tax on the security's appreciation. The amount of each tax that you are liable for depends on how long you have held the security. Quicken tracks the holding period for you and handles the tax implications for both income tax and capital gains.
  • How Quicken handles the tax implications of an ESPP sale
    If you sell the shares within one year after the purchase date or within two years from the beginning of the applicable offering period, this is called a disqualifying disposition. If you hold the shares for more than one year after the Purchase Date and more than two years from the beginning of the applicable offering period, this is called a qualified sale. These and other terms related to ESPP sales and their tax implications are defined in a help topic at the end of this section.
  • Recording corporate actions for ESPP shares
    Quicken does not support all transaction types for use with ESPP shares, because some transactions require cost basis in their calculations, and cost basis is not available for ESPP shares until you actually sell. To record one of the following transactions for ESPP shares, consult your employer for more information and then enter the values that your employer provides.

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