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For an ESPP, the discount you get from the share price is also considered wages not capital gains (in fact shows up on your W-2 !)
by jmalicki 8y ago
For an ESPP, the discount you get from the share price is also considered wages not capital gains (in fact shows up on your W-2 !)
- TomVDB 8y agoThat’s only true for the guaranteed discount on the lock-in price (0-20% depending on the company.) For a stock with lots of appreciation, the real bonus is in the stock price appreciation in the 2 year during which the price is locked in. That part gets taxed at capital gains if you hold the stock long enough. https://www.mystockoptions.com/content/how-long-must-i-hold-shares-purchased-under-section-423-espp-to-receive-favorable-tax-treatment https://www.mystockoptions.com/content/how-long-must-i-hold-...