ESPP Tax Rules – And How They’re Affected by a Qualifying Disposition

An employee stock purchase plan, or ESPP, can provide employees of a company a vehicle through which to purchase that company’s stock. This is usually done through automated payroll deductions, which makes the system convenient, and employers may offer added benefits like discounts on the market price of the shares and a lookback provision. These two features alone may make it seem like a no-brainer to participate in an ESPP if you can.  It’s another...