wilked
Footballguy
You might not think so but the IRS doesI wouldn't think so. AFAIK it merely establishes the purchase price which becomes the cost basis for the stock.
You might not think so but the IRS doesI wouldn't think so. AFAIK it merely establishes the purchase price which becomes the cost basis for the stock.
While each plan is different, from the ones I've seen, always get at least the minimum contribution. If you don't get your foot in the door, you are locked out if the price goes up. Since we can change our contribution amount after knowing the discounted price, it's not only free money but pretty damn low risk. In periods where the value went down, my losses were minimal.In general, people need to take advantage of these kinds of things more. It's the closest thing to free money there is for stable companies. My company spun off of a larger, industry-leading company a few years back. We were given the chance to buy IPO stock at issue price. I was shocked that even the higher-level execs only bought a little bit. I went all in, and my investment has basically paid for my current car and my wife's next car without touching the original investment.
I don't think they will tax my discount as income. I think it's a pretty straightforward equity purchase/sale.FYI I think I was wrong above. Google seems to indicate there are different types of ESPPs.
They tax my ‘discount’ as income, but doesn’t seem to be the case for everyone (at least the upfront taxation(
Only a 5% discount at my company, and shares are purchased out of every paycheck. Because of that small discount I don't come anywhere near maxing it out, but do contribute 5% of salary and 10% of commissions, and immediately sell sometimes, hold others. We have a 3.9% dividend yield, I roll that right back into stock as well.FYI I think I was wrong above. Google seems to indicate there are different types of ESPPs.
They tax my ‘discount’ as income, but doesn’t seem to be the case for everyone (at least the upfront taxation(
Just so I understand, you can buy a $165 stock for $105? I assume there is a cap on how much you can buy? I'd buy whatever those limits are.The Z Machine said:I cannot can back out at zero of the sick drops below purchase price.
After talking it over with my wife, we'll be sinking 2/3rds of a month's salary into company stock.
I get taxed on RSU's upfront, but prob different from ESPP.I don't think they will tax my discount as income. I think it's a pretty straightforward equity purchase/sale.
This.. the discount is "taxed" when you sell.I don't think they will tax my discount as income. I think it's a pretty straightforward equity purchase/sale.
It doesn't. It becomes the cost basis for the stock.You might not think so but the IRS does
You're probably thinking of a stock option, and not an ESPP.FYI I think I was wrong above. Google seems to indicate there are different types of ESPPs.
They tax my ‘discount’ as income, but doesn’t seem to be the case for everyone (at least the upfront taxation(
Do you actually have anything of value to contribute to this conversation?So the discount is considered income?
I already did Leonard.Do you actually have anything of value to contribute to this conversation?
UnlikelyYou're probably thinking of a stock option, and not an ESPP.
You ready to stop being a smug #######?
No need to open a heloc when you have bank wilked. We will go 50/50 on whatever remains, I will front the whole thing, and we settle up once 12 months elapsesThe issue is that we can't deal with missing an entire month of pay from me. My wife is extremely risk averse when it comes to investments, so we settled on the dollar amount. I would have taken the entirety of my December paycheck if it were up to me.
I heard rumors that some people at work were opening up HELOCs to purchase stock because this delta was so large.
The purchase price resets in January.
I'd still have to pay taxes on your profits though...No need to open a heloc when you have bank wilked. We will go 50/50 on whatever remains, I will front the whole thing, and we settle up once 12 months elapses
We will account for all expenses including taxes.I'd still have to pay taxes on your profits though...
Almost. Just sell the stocks when it is allowed. That way, it's not a problem.I was told long ago not to invest in the company you work for. If things go bad at the company you lose your job and your investment savings
Of course, the company I joined two years ago has seen its stock rise 60%
This discount is too good not to max out though.