An employee stock purchase plan is an employee benefit that allows you to purchase shares of your employer’s company stock. It’s a convenient way to buy the shares, thanks to the fact that contributions are often deducted pre-tax directly from payroll. Some purchase plans offer more than convenience, too, with […]
qualifying disposition
5 Reasons Why You Might Want a Disqualifying Disposition for Your Incentive Stock Options
Want to pay less in taxes from the sale of your incentive stock options? While you can’t completely avoid taxes on a profit when you exercise and sell shares from ISOs, you can potentially earn the right to pay at long-term capital gains tax rates — which are lower than […]
How and When Are Incentive Stock Options Taxable?
Incentive stock options are a form of employee compensation that allow you to participate in the appreciating value of a company stock price. Much like their non-qualified stock option cousins, incentive stock options, or ISOs, allow for the purchase of a stock at a predetermined share price. If the current […]
How a Qualifying Disposition Impacts Your ESPP
An employee stock purchase plan (ESPP) may provide you with a convenient way to purchase company stock. Often offered via payroll deduction, you can easily allocate money to the ESPP via your paycheck (similar to how you contribute to a 401(k)). In addition, your ESPP may offer a purchase discount […]