Announcement

Collapse
No announcement yet.

Espp

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Espp

    Please confirm that I have this right:

    2010 ESPP granted and purchased - Purchase price 21.35, FMV 25.12

    $3.77 should have been included in compensation, basis for calculating gain is $25.12?

    Does FMV on purchase date being lower than FMV on grant day have any bearing?

    #2
    Yes it does.

    FMV on purchase date is what counts. See, for example:

    Evan Appelman, EA

    Comment


      #3
      Thanks, Appleman, I looked at this article already but somehow the numbers reported do not make sense applying the rules or maybe I am just dense:

      These are qualifying dispositions since grant date and purchase date were in 2010.

      FMV Grant date 23.79
      PurchPrice 21.35
      FMV Purch 25.12
      SalesPrice 39.2501

      Total gain $2,147.02
      Ord.income $154.64

      25.12 - 23.79 = 1.33 x 130 = 179.90 ord.income per my calculations

      39.2501 - 25.12 = 14.1301 x 130 = 1,836.91

      Can anyone set me straight? Thanks!

      Comment


        #4
        I think not.

        Based on the Intuit example (Situation 3): W2 income = 23.79 - 21.35. Then 39.25 - 23.79 is long-term capital gain. In this case, the FMV at purchase doesn't matter. (I believe it would have, had it been less than the FMV at grant, which is what I thought you said in your original post.)

        Originally posted by Gretel View Post
        Thanks, Appleman, I looked at this article already but somehow the numbers reported do not make sense applying the rules or maybe I am just dense:

        These are qualifying dispositions since grant date and purchase date were in 2010.

        FMV Grant date 23.79
        PurchPrice 21.35
        FMV Purch 25.12
        SalesPrice 39.2501

        Total gain $2,147.02
        Ord.income $154.64

        25.12 - 23.79 = 1.33 x 130 = 179.90 ord.income per my calculations

        39.2501 - 25.12 = 14.1301 x 130 = 1,836.91

        Can anyone set me straight? Thanks!
        Evan Appelman, EA

        Comment


          #5
          Thanks again. I actually found a good entry sheet in my software. It actually a little more complicated and beyond me to explain but I think I know now what I need to do.

          Comment

          Working...
          X