Nebraska 4797N – Special Capital Gains Election for Tax-Free Stock Sales

The Nebraska Special Capital Gains/Extraordinary Dividend Election, elected and claimed on Form 4797N, can provide a substantial tax break for employees who acquire company stock over their years of employment. This election allows employees who own stock in their employer, or former employer, to exclude that stock’s capital gains income from their Nebraska taxable income under certain circumstances.

Nebraska Special Capital Gains Election 4797N can save taxes on capital gains from employee stock

More and more employers are offering stock purchase plans and stock-based compensation to their employees.

  • Does your employer offer an employee stock purchase program?
  • Do you receive employee stock grants from your employer?
  • Do you own stock in and work for your own company?
  • Did you know that Nebraska offers tax breaks for these situations?

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