Stock Purchase Plan
Stocks that are purchased through the Stock Purchase Plan are taxed at the time of purchase and will appear on your 1099 for the same year they are purchased. Once vested, the agent is responsible for the capital gains. Shareworks by Morgan Stanley provides statements that outline the price when sold.
When the shares are initially purchased as part of the Stock Purchase Plan – this is recognized as regular income since the commission was part of the transaction. This is one taxable event that is recognized on the agent’s 1099 during the taxable year. Once the shares are released, the agent will not be taxed again until the shares have been sold (second taxable event). However, they will only be taxed on the gain or loss since the purchase.
Stock Purchase Plan Bonus Shares
Related to the SPP bonus matching program, an Agent is taxed once the shares are vested (if an agent leaves Real prior to the vesting – these shares will be canceled). Bonus Shares have a 1-year vesting period and will appear on the 1099 for the year during which the shares vest. The agent will be taxed once more on the gain or loss if sold from the difference in the market value at the time of the release.
Other Awarded Shares
Any other awarded stock earned (including Cap Stock Award, Elite Stock Award, Cultural Stock Award, and Attraction Stock Award) is taxed once the shares are vested (if an agent leaves Real prior to the vesting – these shares will be canceled). Awarded Shares have a 3-year vesting period and will appear on the 1099 for the year during which the shares vest. The agent will be taxed once more on the gain or loss if sold from the difference in the market value at the time of the release.
Want to learn more about how Stock/Equity works at Real? How do I earn equity (stock) at Real?