ESPP shares transfer a disposition?

Question

Are there tax consequences for transfering ESPP qualified shares to another general brokerage account, even though shares have not been sold?

I recently received an audit notice that these shares were reported as sold. Ouch!

Answer 1

If the actual shares were transferred to a brokerage account there is no sale and no taxable event. However, if the shares were sold and the proceeds were deposited into another investment vehicle that would be a sale and you may have a taxable event.

Hopefully you kept the statements that reflect the nature of the transaction as a transfer, not a sale.