Getting the Most out of Your ESPP Part 2: Tax Considerations

Is the tax advantage of holding onto ESPP shares for a "qualifying disposition" worth it?

Before diving in I’ll start with the counsel we typically give employees: because of the guaranteed benefit from buying your employer stock at a discount on the purchase date, it’s generally best to sell your stock as close to the purchase date as possible.

Clients often ask, “Is it worth holding onto my ESPP shares longer for the tax advantage?” Generally, no. This article gives that question a thorough treatment, showing you that the tax advantage of holding onto shares may not be much of an advantage after all.

• Tricky Taxes

• Is Holding ESPP Stock for a Tax Advantage Worth it?

• Using ESPP Proceeds to Fund Your Financial Goals

Read the full article at BrightPlan.