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Stock Spreadsheets (Updated March 20, 2018.)
Page updated often as we learn about this complex situation -- use browser refresh button to display latest version.
A team of HPAA volunteers has developed spreadsheets to help you deal with two issues:
1. Micro Focus "Seattle SpinCo" US tax liability on 2017 return. US Hewlett Packard Enterprise (HPE) shareholders received shares in a UK company -- Micro Focus International -- in the September 2017 spinoff of Hewlett Packard Enterprise Software, and may have realized gains reportable on their 2017 tax returns -- even if the Micro Focus stock has not been sold. Unlike previous spinoffs (Agilent, HPE, DXC), due to the unique circumstances involving a non-US corporation, this transaction may be taxable for US shareholders.. Details on the Micro Focus tax issue
2. Broker's cost basis may not be accurate. Given the complex series of HP and HPE stock splits and spinoffs over the years -- and the number of administrators and brokers involved -- the cost basis for your shares in the records of the broker(s) currently holding your stock may not be accurate, may not be tracked by purchase lot, or may be reported as "Unknown" -- i.e. defaulted to $0 and therefore incorrectly reporting that your shares in HP Inc, HPE, DXC, or Micro Focus were acquired at no cost. An incorrect cost basis could increase or reduce your possible 2017 tax liability on the new Micro Focus ADRs and your cost basis for all future stock transactions in the various companies.
TurboTax: Using TurboTax for ESPP shares -- step-by-step with screenshots.
Figure out where your stock is. It is unlikely that all of your employee stock is in one place -- especially if there have been spinoffs. You need to determine where your stock is currently located -- and keep each of the companies administering your accounts up-to-date on your current address. Where's my employee stock?
Shareholder records are not kept the company itself. Companies pay Stock Transfer Agents, Employee Stock Plan Administrators, Stock Award Administrators, or other firms to handle the shareholder recordkeeping. How to obtain stock records
Step 2. Check the cost basis amounts used by the broker or administrator and determine your ordinary income or capital gain for the spawned shares.
To do this, the original cost basis for your HWP/HPQ shares must be allocated across the shares you received in the other companies that HP has spawned since you acquired each lot.
The HPAA spreadsheets you need depend on how and when you acquired your stock lots...
If acquired via employee stock purchase plan. Be sure you are using current versions.
- Acquired 1959 through
10/31/2000. To determine your cost basis for each lot of
spawned shares, you select from rows that have been
pre-filled with official data for each SOP or ESPP purchase
- Acquired 11/01/2000 through
10/31/2017. For this time period, you need to determine
cost basis and ordinary income or capital gain for each lot
of spawned shares.
If acquired via service award, option, equity award plan, or open-market purchase -- i.e. not via employee stock purchase. From your records, you enter date and your cost basis for each lot. This spreadsheet does not assist with determining ordinary income vs. capital gain. Again use the HPAA's Pre-2001 Cost Basis and Spinoff Tax Calculator: HPQ-Pre2001-SpinoffTaxCalc-v12.xlsx
(If you don't see a row of tabs along the bottom edge of the HPAA spreadsheets, you may have the window sized in such a way that the tabs are hidden. Microsoft article.)
If acquired via the Compaq employee stock purchase plan. To determine cost basis and ordinary income or capital gain for each lot of shares spawned since the Compaq merger, download the HPAA's Compaq Cost Basis and Spinoff Tax Calculator: CPQ-ESPP-SpinoffTaxCalc-v01.xlsx
- The current spreadsheet versions supersede recent files named "MicroFocusUSTax..." and "HPRelatedStockBasis..." -- plus HPAA files named "HP...Stock_Purchase_Valuation..." dating back to 2004.
- The HPAA spreadsheets are based on dates and values from official HP documents. Your records may show transactions executed a day or two later -- or with a penny or two cost variation due to rounding.
- If you set up a dividend reinvestment program (DRIP) in any of your accounts, additional shares were automatically purchased at market price. You paid taxes on the dividends. The resulting shares have a cost basis and spawned spinoff shares, but the special ESPP tax calculations do not apply.
- For any of the spinoffs, your broker may have used a different formula than the one suggested in the tax basis letter provided by the company -- resulting in a somewhat different value. Check your brokerage account online -- or by examining a recent account statement -- to view your holdings in each stock going forward. See Micro Focus stock issues. For other spinoffs, see our Stock Decoder.
- Many factors may have affected the cost basis values of your HPQ, HPE, DXC, and MFGP stock in your current broker's records. Obtaining stock records from a broker or administrator. Why cost basis data may not be accurate: Stock Records.
Neither the company nor the IRS knows your cost basis -- and the current administrators and brokers may not have the correct value. Only you have enough information to accurately determine your cost basis for each lot of stock.
Step 3. If your broker's report to the IRS was incorrect as shown in your 1099-B, you can enter the correct data and include an explanatory note in your return -- using your tax-preparation software or via your tax preparer. Eventually, the IRS will mail you a computer-generated notice about the discrepancy between your tax return and the broker reports. You then follow the instructions in the notice to reply with a copy of your supporting data. If you have already filed before discovering this issue, you can file an amended return via your tax software or preparer.
You can do all of this with tax-preparation software -- including downloading the 1099-B information from your broker's website. (See TurboTax Import Partner list.)
TurboTax: Using TurboTax for ESPP shares -- step-by-step with screenshots.
If you elect to hire professional help, the IRS explains the different types of tax professional. You can search the online IRS Federal Tax Return Preparer Directory by geography and qualifications -- or by name to verify credentials: Directory of Federal Tax Return Preparers.
Be sure to save the documents you used -- including a copy of the HPE "Dear Shareholder" letter
HP Share Ownership Program Tax Reporting provides helpful information collected by HPAA member Alan Silverstein and posted on his personal website: (Revised December 11, 2013.)
The spreadsheets are based on HP records provided by HPI Global Equity Administration.
- 2000 through 2010: "SOP Historical FMVs & Purchase Prices."
- 2011: Announcement of new ESPP
- 2011 through 10/31/17: "ESPP Historical FMVs & Purchase Prices."
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