Questions tagged [espp]

In the United States, an employee stock purchase plan (ESPP) is a tax-efficient means by which employees of a corporation can purchase the corporation's stock, often at a discount.

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31 views

ESPP capital gain tax form for non residents in United States

I purchased and sold my company shares last year using ESPP (Employee Stock Purchase Program). I am a non-resident alien (F-1 visa, OPT). What form do I need to report the capital gain from this sale ...
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How do you handle ESPP in gnucash?

How do you enter buying and selling ESPP (Employee Stock Purchase Plan) shares in gnucash? For example, say one purchased 100 SHS of XYZ on 5/1/18, a grant date of 12/31/17, where the acquisition fair ...
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44 views

Employee share purchase plans,exit options, IRS

I am investigating the options for what to do with an Employee Share Purchase plan upon retirement that do not result in having to pay a big tax to IRS. I understand that I will have a taxable event ...
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Do i have to pay capital gains tax if i sell ESPP stock from ESPP account and bought same stock from individual broker account

Do i have to pay capital gains tax if i sell ESPP stock from ESPP account and bought same stock from individual broker account? Here is an example: I have 100 shares of ESPP stock allocated at 50$ in ...
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As a current F1 student, would I need to pay taxes on ESPP stocks that I bought before I came over to pursue higher education?

I am foreign graduate student in USA. My previous employer had ESPP programs, and I bought some stocks under those programs when I was in my home country, India. The investments were made when I was ...
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55 views

ESPP + selling ESPP + selling stock — wash sale clarification?

Have a general question regarding a current situation I'm in. Have been reading for a good hour now and still don't completely understand the optimal way to proceed, hoping you all can help. ...
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88 views

What is the incentive for holding onto ESPP stock? Why not convert it if I want the long term gain?

If I have to hold onto the stock for 1 year after purchase and 2 years after Offering / Grant Date for long term treatment, and I've already incurred tax on the 15% discount, why should I continue to ...
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105 views

Reporting adjusted cost basis for ESPP shares

I have a 1099-B from selling some lots of shares purchased through an ESPP. The sales are qualifying dispositions as the shares were held longer than 2 years from the grant date and 1 year from the ...
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69 views

Why don't companies systematically offer ESPPs that offer stock options (instead of stocks)?

I read on https://fairmark.com/compensation-stock-options/employee-stock-purchase-plans/overview-of-employee-stock-purchase-plans-espps/ (mirror) in the context of employee stock purchase plans (ESPP) ...
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In what case(s) is the end of the offering period (when one purchases the shares) considered the grant date?

I read on https://fairmark.com/compensation-stock-options/employee-stock-purchase-plans/dispositions-of-espp-stock/ in the context of employee stock purchase plans (ESPP) in the United States: For ...
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Is the first day of the offering period always the same as the “grant date” in the context of employee stock purchase plans (ESPP)?

Is the first day of the offering period always the same as the "grant date" in the context of employee stock purchase plans (ESPP) in the United States? Motivation to ask the question: I'm asking as ...
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127 views

ESPP USA owned company UK tax query

I have been taxed on the full profit made following the sale of my shares which were purchased through an ESPP. I purchased at 85% of day 1 cost. I thought I would only have to pay tax on the 15% ...
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1k views

Can Apple employees buy $QQQ stock during blackout?

Imagine a non-executive (aka normal Joe), who works in engineering at Apple. Per the SEC/Company policy, he can not do $AAPL trades during blackout periods. However, does this also prevent him from ...
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56 views

ESPP: Qualifying Disposition (18 mo. after purchase) vs. Long Term (12 mo. after purchase)

I've attempted to search for answers to this, but I'm just not understanding them, so wanted to post to see if I can get some clarity. I am part of a ESPP which has a 6 month lookback, 15% discount, ...
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111 views

Are there risks to having money in an ESPP if the company fails before the purchase date?

I work for a company that offers an ESPP. Employees can put money toward the plan throughout the first half of the year, and it is converted to stock at a 15% discount at the end of Q2. Stock can be ...
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27 views

How to calculate tax liability for stock purchased through ESPP and then sold?

I'm going to be receiving some stock that I purchased through my Employee Stock Purchase Plan (ESPP) soon and I'm wondering how I would go about determining how much I would owe for taxes if I sold ...
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68 views

Question about the motivation of changing the commission rule of Employee Stock Purchase Plan (ESPP)

I am wondering what might be the cause that company gets rid of the "lookback" provision for stock commission. Does the company need to pay for the price difference between the commission price and ...
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3k views

How does the IRS $25,000 purchase limit carry-over work for ESPP?

My company offers an ESPP program. For completeness's sake, the basic details are as follows: There is a 15% discount on purchase. There are always two simultaneous offerings. Employees may ...
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2answers
91 views

Understanding capital gains and taxes on employer stock purchase plan

My company offers employee stock purchase plan at a 15% discount. What I am wondering is how does capital gains come into effect if I only sell my original investment? As an example, using even ...
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1answer
64 views

ESPP, expat and CGT in which country (Canada/UK)

I participate in my Canadian company's ESPP whilst living and working in Canada as a permanent resident. I'm moving back to the UK in August and will sell my shares when I'm back in the UK. Will the ...
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1answer
851 views

How to calculate profit for ESPP stocks including cost basis, tax, fees etc

I opted for ESPP stock options in my previous company. The plan offered 10% discount on market value. When I opted for the plan the company created a etrade.com account on my behalf and I could see ...
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ESPP--any reason not to go all in?

I'm just finishing up paying off my student loans (woohoo!) and am starting to look at places I can put my money to make it work for me. I've read Kobliner's Get a Financial Life and am interested in ...
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1answer
80 views

Mismatched cost basis on 1099-B form for ESPP shares

I have a question about my 1099-B form regarding ESPP sales. My company allows me to buy shares at a 15% discount through an ESPP program. I buy-and-hold for 1 year 1 day so my sales are taxed at ...
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Should I contribute to my employer's Employee Stock Program (ESPP), and if so how much and only during certain times of the year?

Although it is company-specific, what are your experiences when contributing to ESPP (Employee Stock Program)? More specifically, do you recommend contributing to ESPP in max? Or maybe it is only ...
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1answer
65 views

Dividend from ESOP to Cash - India

I'm Indian and working for a US organisation in India. I have been investing in the Employee Stock Purchase Plan (ESPP) for a while now. During the initial investment period, I had not opted for re-...
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123 views

Donating ESPP shares to non-profit organization

In recent years, I've made donations to some non-profit organizations using stock shares. They immediately sell when they receive the shares from my brokerage firm and send me a document at the end ...
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1answer
565 views

Received W2 from ex-employer for selling shares previously bought under ESPP

My wife used to work at Oracle and quit in January 2016. While she was there, she bought Oracle stock under an ESPP (employee stock purchase plan) that allowed her to buy the stock at a discount. In ...
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1answer
1k views

Taxes on Income from an Employee Stock Purchase Plan?

My employer offers an ESPP which allows us to purchase company stock at a 5% discount. I signed up for the plan, but was not interested in holding on to the shares for long, so I sold as soon as I ...
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39 views

Is it possible to contribute to an ESPP outside the % chosen?

Just curious if it is possible to add additional money to an ESPP during the period before the purchase occurs. I started mine withholding a little lower than I think I want now that I see what I may ...
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1answer
660 views

what is an ESPP transfer restriction, and why would it be longer than the sales restriction?

I am participating in my company's ESPP. My share lots have two restrictions: A sales restriction of 18 months, which is what it sounds like: I can't sell the shares until I've held them for 18 ...
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237 views

meaning of qualifying/disqualifying distribution as separate from capital gains implications

I have an ESPP and am trying to figure out the difference between a qualifying and disqualifying distribution. I have read the explanation from Intuit here: https://turbotax.intuit.com/tax-tools/tax-...
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1answer
182 views

Evaluating worth of ESPP (Startup)

I got an entry offer for an Engineering position: base salary 90K/y at a start up (around 50 employees, got good funding during the last year). The package includes an ESPP for 6000 stocks (1 year ...
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1answer
225 views

Choosing which ESPP stocks to sell?

I participate in the ESPP (Employee Stock Purchase Plan) that my employer provides. Over the years I have accumulated multiple "lots" or positions which all have a different purchase price. I've ...
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1answer
2k views

ESPP: Share vs Payroll withholding

I am considering enrolling in my company's ESPP program during the next offering period. The program is non-qualified, and my employer will withhold taxes on the difference between fair market value ...
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1answer
247 views

Can I sell my ESPP in a different order than I acquired it, to avoid paying too much tax on profits?

Here is the scenario. Lets say, BATCH_1: My company purchased ESPP on my behalf at $8.50(15% of $10) on JAN 2016. BATCH_2: My company purchased ESPP on my behalf at $10.20(15% of $12) on AUG 2016. ...
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Do I need to pay tax in US that ESPPS and RSUs earned in India

When I was working in India I got some RSUs and also purchased ESPPs from my company by contributing from my salary.Its US based company located in India. I have an account in ETrade. ETrade has ...
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1answer
335 views

Post tax versus pretax (ESPP versus straight investment)

I work at a company that offers a 50% match on 401k contributions, on the first $3500 per year (So $1750 total match possibility). They also have an employee stock purchase plan (ESPP), which ...
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614 views

How can I get the most value from my employer's ESPP?

My employer offers an ESPP with the following details: 15% discount Max contribution is 15% of base salary Purchase transaction occurs on the last business day of the month Transaction settles 3 days ...
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2answers
726 views

ESPP (Employee Stock Purchase Plan) Funds on Mortgage Loan Application

Will the bank count these funds? My company ESPP works like this: 25% of my bi-monthly paycheck (after taxes) is withheld and sent to some kind of company escrow account. This is done for 6 months. ...
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1answer
111 views

ESPP and payroll tax

"I participate in my company's stock purchase plan ESPP at a 10% discount. purchases are made quarterly. My company has been adding the 10% discounted amount onto my payroll quarterly and taxing it. ...
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2answers
844 views

Employer reported ESPP ordinary income on wrong year's W-2

I sold some Employee Stock Purchase Plan shares on 12/31/2014. As far as I understand, the ordinary income portion of the sale should have been reported on my 2014 Form W-2 from my employer but was ...
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1answer
1k views

is a forced sale of company stock during Acquisition taxed at short or long term gains

The company i work for was recently bought out; as a result employees are being forced to sell company stock. Some of my ESPP shares are disqualified/Long Term Capital gains and some are disqualified/...
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1answer
112 views

ESPP stocks taxable in US after moving to US from Singapore

I'm Singapore planning to move to US in 2-3 months. I have some ESPP shares(US Company) that I would like to keep for another year or more. If I sell these shares after moving to US will it be taxed ...
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154 views

ESPP compounding strategy and taxation?

Let me start off giving some of the details of the ESPP my employer offers: Stock Price Discount: 15% Employee Salary Contribution: 3-10% (in whole value increments) Holding Period: 12 months (...
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1k views

Where Do ESPP stocks come from?

When a company gives its employees an ESPP plan, where do they get the stocks to sell to them? are they being bought in the free market? but then, where does the discount come from? is it stocks that ...
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2answers
64 views

Invest in ESPP Single Stock or General Market

The employee stock purchase program (ESPP) at a US company provides the opportunity to purchase whole or fractional shares of a stock at a 5% discount, or 95% of the stock price at the close of the ...
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3answers
268 views

Is this Employee Stock Purchase Plan worth it when adding my student loan into the equation?

Here are the details of my company's Employee Stock Purchase Plan: An automatic 5% purchase discount off the fair market value of the stock. Payroll deductions start on July 1st. The stock purchase ...
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1answer
430 views

Can compensation income from an employee stock purchase plan be negative?

If I took a loss on my sale of stock from an ESPP (employee stock purchase plan), and the stock had a qualifying disposition, what is my compensation income? I found the following definition: In ...
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3answers
4k views

When filing taxes in Canada, in what cases does box 39 on the T4 get reported as half of box 38?

When filing taxes in Canada, when does box 39 get reported as half of box 38? In my case, I got ESPP amount reported in box 38, with box 39 missing in my T4 altogether. According to my accountant, the ...
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2answers
203 views

ESPP cost bases for 2014 taxes

I participated in a qualified employee stock purchase plan (ESPP) and I'm trying to figure out the cost basis of my stock for tax purposes. When I enrolled for the ESPP the stock price was $29.44, ...