IRC §423 qualifying ESPP

ESPP Optimizer

Free money from your employer, partly. Hold long enough and the IRS gives you long-term capital gains treatment.

Annual salary

ESPP contribution % of salary

ESPP discount %

Look-back provision?

Stock price at grant (start of period)

Stock price at purchase (end of period)

Expected sale price (when you sell)

Holding plan

Federal marginal bracket

LTCG rate

Per ESPP period results

Shares purchased

at purchase price

Discount captured

vs FMV at purchase

Ordinary income on sale

added to W-2

Capital gain on sale

short or long term

Net after-tax benefit: loading...

Rule guidance loading...

Cite: IRC §423 (qualifying ESPP), §423(b)(8) 15% max discount, §423(c) ordinary income recognition. Reported on Form 3922.

Have us file your ESPP correctly

Estimate per offering period. Most plans run 6-month periods (so multiply by 2 for annual). Look-back means basis uses the lower of grant or purchase price, which increases the discount. AMT may apply on ISOs (different program). Phone 689-331-5723.