{"id":14629,"date":"2018-12-28T08:00:46","date_gmt":"2018-12-28T14:00:46","guid":{"rendered":"https:\/\/taxprocenter.proconnect.intuit.com\/?p=14629"},"modified":"2019-03-05T17:41:33","modified_gmt":"2019-03-05T23:41:33","slug":"tax-implications-and-sales-requirements-on-employee-stock-purchase-plans","status":"publish","type":"post","link":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/","title":{"rendered":"Tax Implications and Sales Requirements on Employee Stock Purchase Plans"},"content":{"rendered":"<p>Tax practitioners should be aware of how to treat their clients\u2019 tax and sales requirements of employee stock purchase plans (ESPP). Here\u2019s a primer on what you need to know.<\/p>\n<p>Let\u2019s review the terms that we will be using to better understand what is taking place here:<\/p>\n<ul>\n<li>An <b>ESPP <\/b>is a type of broad-based stock plan, run by a company, that permits employees to use payroll deductions, accumulated over a specific purchase period, to acquire stock from the company, generally at a discount. The amount of the discount is dependent on the company\u2019s plan, but the maximum discount is 15 percent.<\/li>\n<li><b>Cost\u00a0basis\u00a0<\/b>is the original value of an asset for tax purposes and is usually the purchase price. For example, how much did your client pay for the stock?<\/li>\n<li>The <b>holding period\u00a0<\/b>is the amount of time the investment is held by an investor, or the period\u00a0between the purchase and sale of a security. Here, you\u2019ll want to know how long they held the stock.<\/li>\n<li>A <b>capital gain <\/b>is the result when an asset, such as a security, is sold for more than the purchase price. In other words, did the sale make money? Conversely, if the proceeds of the sale were less than the purchase price, then you would have a <b>capital loss<\/b> where they lost money on their investment.<\/li>\n<\/ul>\n<p>And a few ESPP date terms:<\/p>\n<ul>\n<li>The <b>grant date or offering date<\/b> is usually the first date of the offering period in an ESPP. This date applies for all the participating employees. This is when payroll deductions start.<\/li>\n<li>The <b>purchase or exercise date <\/b>is the date on which employee contributions are used to purchase stock.<\/li>\n<\/ul>\n<p><b>Offering Periods and Purchase Dates<\/b><\/p>\n<p>Let\u2019s look at a typical six-month offering period with two purchase dates, March through September. The enrollment period starts before the offering period. In our case, the enrollment period may be Feb. 15-28 or 29 for the offering period of March 16-Sept. 15.<\/p>\n<ul>\n<li>March 16 is the offering date or grant date, and is when the offering and salary deductions begin. Generally, there is an equal amount taken out of wages from each of the employee\u2019s paychecks during this period, accumulating until the purchase date.<\/li>\n<li>June 15 is the purchase date. Stock is purchased at this time using the funds that were taken from employee paychecks.<\/li>\n<li>Sept. 15 is the second purchase date for purchasing stock in our six-month example. During the previous three-month purchase period, funds were withheld from a client\u2019s wages. This is also the end of the six-month offering period.<\/li>\n<\/ul>\n<p><b>Qualifying and Disqualifying Dispositions<\/b><\/p>\n<p>A sale of ESPP securities is considered to be a <b>qualified disposition<\/b> when the stock is sold over two years after the offering date and over a year after the purchase date.<\/p>\n<p>If the ESPP securities are sold either within two years of the offering date or within a year of the purchase date, the sale is considered a <b>disqualified disposition<\/b>. A qualified disposition may result in preferential tax treatment.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-14633\" src=\"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2018\/12\/ESPP-Disgualifying-Sale-Gain.jpg?w=640\" alt=\"\" width=\"640\" height=\"415\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-14634\" src=\"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2018\/12\/ESPP-Disqualifying-Sale-Loss.jpg?w=640\" alt=\"\" width=\"640\" height=\"402\" \/><\/p>\n<p><b>How to Report the Sale of ESPP Securities<\/b><\/p>\n<p>To report the sale of ESPP securities, you will need the following:<\/p>\n<ul>\n<li>The W-2. If you can obtain the detailed W-2, it might show the ESPP disqualified disposition. The additional amount may be in Box 14.<\/li>\n<li>The 1099-B or equivalent form (1099 Consolidated Statement) from the brokerage firm that sold the securities.<\/li>\n<li>Based on what\u2019s been reported (or not reported) on the W-2, you may also want plan documents, such as Purchase Statements and Trade confirmations.<\/li>\n<\/ul>\n<p><b>How to Calculate the Sale<\/b><\/p>\n<ul>\n<li>Use your capital gains or losses worksheet or similar data entry in Intuit\u00ae <a href=\"https:\/\/proconnect.intuit.com\/tax-online\/\"title=\"\"  target=\"_blank\" rel=\"false noopener noreferrer\" data-wa-link=\"body_ito\">ProConnect\u2122 Tax Online<\/a>, <a href=\"https:\/\/proconnect.intuit.com\/lacerte\/\"title=\"\"  target=\"_blank\" rel=\"false noopener noreferrer\" data-wa-link=\"body_lc\">Lacerte<\/a>\u00ae or <a href=\"https:\/\/proconnect.intuit.com\/proseries\/\"title=\"\"  target=\"_blank\" rel=\"false noopener noreferrer\" data-wa-link=\"body_ps\">ProSeries<\/a>\u00ae.<\/li>\n<li>If the sale occurred more than two or more years after the grant date, you will have a qualified disposition. Find the original stock purchase price, or the basis, on your client\u2019s 1099-B. Now check the box; the transaction was reported to the IRS with basis. Move down to description of property, and enter either the name of the stock or the stock symbol, and the number of shares they sold. On date acquired, enter the day your client purchased the stock. Enter \u201cvarious\u201d in the field if they purchased stock on more than one day. In date sold, enter the day the stock was sold, stated on your client\u2019s 1099-B.<\/li>\n<li>Enter the amount reported on the 1099-B Sales Price. Normally, the fees and commission have already been deducted from this amount, but you may need to verify this. Move to cost or other basis, and report the amount stated on the 1099-B. Now, compute the amount they paid for the stock by multiplying the number of shares by the cost per share, and then add in the income reported on their W-2 to get the actual total cost. Enter it on the Corrected Basis line.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-14632\" src=\"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2018\/12\/ESPP-Share-Sale-Overview.jpg?w=640\" alt=\"\" width=\"640\" height=\"467\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to treat the tax and sales requirements of employee stock purchase plans.<\/p>\n","protected":false},"author":144648925,"featured_media":9446,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rkv_browse_by_id":0,"rkv_cta_id":0,"rkv_optimize_for_pagespeed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"useModifiedDate":false,"customPublishDate":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[509474089],"tags":[],"intuit_collection":[],"intuit_series":[],"coauthors":[646041708],"class_list":["post-14629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-law-and-news"],"header_image":"","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>ESPP tax implications and sales requirements<\/title>\n<meta name=\"description\" content=\"Employee Stock Purchase Plans (ESPPs) have specific holding period and disposition rules. Help clients understand ESPP tax treatment, qualifying dispositions, and W-2 reporting.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax Implications and Sales Requirements on Employee Stock Purchase Plans - Tax Pro Center | Intuit\" \/>\n<meta property=\"og:description\" content=\"Employee Stock Purchase Plans (ESPPs) have specific holding period and disposition rules. Help clients understand ESPP tax treatment, qualifying dispositions, and W-2 reporting.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/\" \/>\n<meta property=\"og:site_name\" content=\"Tax Pro Center | Intuit\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/IntuitAccountants\" \/>\n<meta property=\"article:published_time\" content=\"2018-12-28T14:00:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-03-05T23:41:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/07\/manage-e1535553016277.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"655\" \/>\n\t<meta property=\"og:image:height\" content=\"357\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Michael A. Tullio, EA\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@IntuitAccts\" \/>\n<meta name=\"twitter:site\" content=\"@IntuitAccts\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Michael A. Tullio, EA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/\"},\"author\":{\"name\":\"Michael A. Tullio, EA\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#\\\/schema\\\/person\\\/bdb0d06bf03cba8a75173145c0fb7d61\"},\"headline\":\"Tax Implications and Sales Requirements on Employee Stock Purchase Plans\",\"datePublished\":\"2018-12-28T14:00:46+00:00\",\"dateModified\":\"2019-03-05T23:41:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/\"},\"wordCount\":816,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2017\\\/07\\\/manage-e1535553016277.jpg\",\"articleSection\":[\"Tax Law and News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/\",\"name\":\"ESPP tax implications and sales requirements\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2017\\\/07\\\/manage-e1535553016277.jpg\",\"datePublished\":\"2018-12-28T14:00:46+00:00\",\"dateModified\":\"2019-03-05T23:41:33+00:00\",\"description\":\"Employee Stock Purchase Plans (ESPPs) have specific holding period and disposition rules. Help clients understand ESPP tax treatment, qualifying dispositions, and W-2 reporting.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/#primaryimage\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2017\\\/07\\\/manage-e1535553016277.jpg\",\"contentUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2017\\\/07\\\/manage-e1535553016277.jpg\",\"width\":655,\"height\":357,\"caption\":\"A multi-ethnic group of three young business professionals sitting at a table in a conference \\\/ board room. Most likely attending brainstorming or idea meeting.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/tax-law-and-news\\\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Tax Implications and Sales Requirements on Employee Stock Purchase Plans\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#website\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/\",\"name\":\"Tax Pro Center | Intuit\",\"description\":\"Tax Pro Center\",\"publisher\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#organization\",\"name\":\"Tax Pro Center | Intuit\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/Tax_Pro_Center_Logo_Final_large.webp\",\"contentUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/Tax_Pro_Center_Logo_Final_large.webp\",\"width\":872,\"height\":160,\"caption\":\"Tax Pro Center | Intuit\"},\"image\":{\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/IntuitAccountants\",\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/IntuitAccts\",\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/intuitaccountants\\\/?hl=en\",\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/company\\\/intuit-accountants\\\/\"]},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/#\\\/schema\\\/person\\\/bdb0d06bf03cba8a75173145c0fb7d61\",\"name\":\"Michael A. Tullio, EA\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/avatar\\\/f33cca1afa17b9c597b277a520ed0600c78787e49806fc67e01e65718c01a8c5?s=96&d=identicon&r=g\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/avatar\\\/f33cca1afa17b9c597b277a520ed0600c78787e49806fc67e01e65718c01a8c5?s=96&d=identicon&r=g\",\"contentUrl\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/avatar\\\/f33cca1afa17b9c597b277a520ed0600c78787e49806fc67e01e65718c01a8c5?s=96&d=identicon&r=g\",\"caption\":\"Michael A. Tullio, EA\"},\"description\":\"Mike is enjoying his 21st tax season with Intuit\u00ae. He began as a seasonal quality analyst with Tax Development, which transitioned to a full-time position 16 years ago. Prior to Intuit, he worked for H&amp;R Block as an office manager, tax preparer and tax instructor. He has published articles, and conducted tax education webinars and seminars within Intuit. These include helping new employees become more familiar with taxes by explaining various topics, including employee stock sales. Mike has more than 40 years\u2019 experience in the tax preparation industry with his own tax firm, where he focuses on individuals and small partnership tax returns.\",\"url\":\"https:\\\/\\\/accountants.intuit.com\\\/taxprocenter\\\/author\\\/michaeltulliotax\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"ESPP tax implications and sales requirements","description":"Employee Stock Purchase Plans (ESPPs) have specific holding period and disposition rules. Help clients understand ESPP tax treatment, qualifying dispositions, and W-2 reporting.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/","og_locale":"en_US","og_type":"article","og_title":"Tax Implications and Sales Requirements on Employee Stock Purchase Plans - Tax Pro Center | Intuit","og_description":"Employee Stock Purchase Plans (ESPPs) have specific holding period and disposition rules. Help clients understand ESPP tax treatment, qualifying dispositions, and W-2 reporting.","og_url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/","og_site_name":"Tax Pro Center | Intuit","article_publisher":"https:\/\/www.facebook.com\/IntuitAccountants","article_published_time":"2018-12-28T14:00:46+00:00","article_modified_time":"2019-03-05T23:41:33+00:00","og_image":[{"width":655,"height":357,"url":"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/07\/manage-e1535553016277.jpg","type":"image\/jpeg"}],"author":"Michael A. Tullio, EA","twitter_card":"summary_large_image","twitter_creator":"@IntuitAccts","twitter_site":"@IntuitAccts","twitter_misc":{"Written by":"Michael A. Tullio, EA","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/#article","isPartOf":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/"},"author":{"name":"Michael A. Tullio, EA","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#\/schema\/person\/bdb0d06bf03cba8a75173145c0fb7d61"},"headline":"Tax Implications and Sales Requirements on Employee Stock Purchase Plans","datePublished":"2018-12-28T14:00:46+00:00","dateModified":"2019-03-05T23:41:33+00:00","mainEntityOfPage":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/"},"wordCount":816,"commentCount":0,"publisher":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#organization"},"image":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/#primaryimage"},"thumbnailUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2017\/07\/manage-e1535553016277.jpg","articleSection":["Tax Law and News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/","url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/","name":"ESPP tax implications and sales requirements","isPartOf":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#website"},"primaryImageOfPage":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/#primaryimage"},"image":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/#primaryimage"},"thumbnailUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2017\/07\/manage-e1535553016277.jpg","datePublished":"2018-12-28T14:00:46+00:00","dateModified":"2019-03-05T23:41:33+00:00","description":"Employee Stock Purchase Plans (ESPPs) have specific holding period and disposition rules. Help clients understand ESPP tax treatment, qualifying dispositions, and W-2 reporting.","breadcrumb":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/#primaryimage","url":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2017\/07\/manage-e1535553016277.jpg","contentUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2017\/07\/manage-e1535553016277.jpg","width":655,"height":357,"caption":"A multi-ethnic group of three young business professionals sitting at a table in a conference \/ board room. Most likely attending brainstorming or idea meeting."},{"@type":"BreadcrumbList","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-implications-and-sales-requirements-on-employee-stock-purchase-plans\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/accountants.intuit.com\/taxprocenter\/"},{"@type":"ListItem","position":2,"name":"Tax Implications and Sales Requirements on Employee Stock Purchase Plans"}]},{"@type":"WebSite","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#website","url":"https:\/\/accountants.intuit.com\/taxprocenter\/","name":"Tax Pro Center | Intuit","description":"Tax Pro Center","publisher":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/accountants.intuit.com\/taxprocenter\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#organization","name":"Tax Pro Center | Intuit","url":"https:\/\/accountants.intuit.com\/taxprocenter\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#\/schema\/logo\/image\/","url":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2022\/10\/Tax_Pro_Center_Logo_Final_large.webp","contentUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-content\/uploads\/2022\/10\/Tax_Pro_Center_Logo_Final_large.webp","width":872,"height":160,"caption":"Tax Pro Center | Intuit"},"image":{"@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/accountants.intuit.com\/taxprocenter\/IntuitAccountants","https:\/\/accountants.intuit.com\/taxprocenter\/IntuitAccts","https:\/\/accountants.intuit.com\/taxprocenter\/intuitaccountants\/?hl=en","https:\/\/accountants.intuit.com\/taxprocenter\/company\/intuit-accountants\/"]},{"@type":"Person","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/#\/schema\/person\/bdb0d06bf03cba8a75173145c0fb7d61","name":"Michael A. Tullio, EA","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/accountants.intuit.com\/taxprocenter\/avatar\/f33cca1afa17b9c597b277a520ed0600c78787e49806fc67e01e65718c01a8c5?s=96&d=identicon&r=g","url":"https:\/\/accountants.intuit.com\/taxprocenter\/avatar\/f33cca1afa17b9c597b277a520ed0600c78787e49806fc67e01e65718c01a8c5?s=96&d=identicon&r=g","contentUrl":"https:\/\/accountants.intuit.com\/taxprocenter\/avatar\/f33cca1afa17b9c597b277a520ed0600c78787e49806fc67e01e65718c01a8c5?s=96&d=identicon&r=g","caption":"Michael A. Tullio, EA"},"description":"Mike is enjoying his 21st tax season with Intuit\u00ae. He began as a seasonal quality analyst with Tax Development, which transitioned to a full-time position 16 years ago. Prior to Intuit, he worked for H&amp;R Block as an office manager, tax preparer and tax instructor. He has published articles, and conducted tax education webinars and seminars within Intuit. These include helping new employees become more familiar with taxes by explaining various topics, including employee stock sales. Mike has more than 40 years\u2019 experience in the tax preparation industry with his own tax firm, where he focuses on individuals and small partnership tax returns.","url":"https:\/\/accountants.intuit.com\/taxprocenter\/author\/michaeltulliotax\/"}]}},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2017\/07\/manage-e1535553016277.jpg","jetpack_shortlink":"https:\/\/wp.me\/pazjGh-3NX","jetpack-related-posts":[{"id":15154,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/restricted-stock-units-and-how-they-affect-your-clients-taxes\/","url_meta":{"origin":14629,"position":0},"title":"Restricted Stock Units: How RSUs Affect Your Clients\u2019 Taxes","author":"Michael A. Tullio, EA","date":"February 27, 2019","format":false,"excerpt":"Help your tax clients navigate issues related to restricted stock units and how the compensation is treated for tax filing purposes.","rel":"","context":"In &quot;Tax Law and News&quot;","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"wasted money","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/01\/wasted-money-e1535552300358.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/01\/wasted-money-e1535552300358.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/01\/wasted-money-e1535552300358.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":11205,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/basis-in-the-world-of-tax-stock-basis\/","url_meta":{"origin":14629,"position":1},"title":"Basis in the World of Tax: Stock Basis","author":"Anita Robinson, EA, NPTI Fellow","date":"December 18, 2017","format":false,"excerpt":"Learn what tax practices need to know about stock basis and stock options.","rel":"","context":"In &quot;Tax Law and News&quot;","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"counting money for tax savings","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/01\/coins-e1508456149425.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/01\/coins-e1508456149425.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/01\/coins-e1508456149425.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/01\/coins-e1508456149425.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":1893,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/tax-tips-for-small-businesses\/","url_meta":{"origin":14629,"position":2},"title":"Tax Tips for Small Businesses","author":"Mike D'Avolio, CPA, JD","date":"February 22, 2016","format":false,"excerpt":"In general, try to collect and organize your tax records, documents and QuickBooks\u00ae files prior to the filing deadline, in order to avoid the last-minute scramble and potential fees. Here are the best ways you can save some tax dollars and avoid some major compliance headaches. Tax Deductions You\u2019re allowed\u2026","rel":"","context":"In &quot;Tax Law and News&quot;","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"tax practice client review","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/02\/small-biz-e1577137539170.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/02\/small-biz-e1577137539170.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2016\/02\/small-biz-e1577137539170.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":52735,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/new-regs-corporate-stock-repurchase-excise-tax\/","url_meta":{"origin":14629,"position":3},"title":"New regs: Corporate Stock Repurchase Excise Tax","author":"Intuit Accountants Team","date":"April 24, 2024","format":false,"excerpt":"Find out more about proposed regulations that would provide tax professionals and taxpayers with new guidance concerning the 1% excise tax owed on corporate stock repurchases.","rel":"","context":"In &quot;Tax Law and News&quot;","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"New regs: Corporate Stock Repurchase Excise Tax","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2024\/04\/New-regs-Corporate-Stock-Repurchase-Excise-Tax-copy.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2024\/04\/New-regs-Corporate-Stock-Repurchase-Excise-Tax-copy.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2024\/04\/New-regs-Corporate-Stock-Repurchase-Excise-Tax-copy.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2024\/04\/New-regs-Corporate-Stock-Repurchase-Excise-Tax-copy.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":17641,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/client-relationships\/tips-to-help-your-clients-save-for-the-future\/","url_meta":{"origin":14629,"position":4},"title":"Tips to Help Your Clients Save for the Future","author":"Mike D'Avolio, CPA, JD","date":"October 11, 2019","format":false,"excerpt":"Help your tax clients save for the future with these practical tips.","rel":"","context":"In &quot;Client Relationships&quot;","block_context":{"text":"Client Relationships","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/client-relationships\/"},"img":{"alt_text":"money payment","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2015\/07\/dollar1-e1535552362233.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2015\/07\/dollar1-e1535552362233.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2015\/07\/dollar1-e1535552362233.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":28502,"url":"https:\/\/accountants.intuit.com\/taxprocenter\/tax-law-and-news\/retirement-plans-for-businesses\/","url_meta":{"origin":14629,"position":5},"title":"Retirement plans for businesses","author":"Intuit Accountants Team","date":"April 26, 2023","format":false,"excerpt":"Be your clients' trusted advisor and help them with business retirement plans. In this article, find out more about plan options.","rel":"","context":"In &quot;Tax Law and News&quot;","block_context":{"text":"Tax Law and News","link":"https:\/\/accountants.intuit.com\/taxprocenter\/category\/tax-law-and-news\/"},"img":{"alt_text":"Retirement plans","src":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2023\/03\/Retirement-plans-for-businesses-copy.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2023\/03\/Retirement-plans-for-businesses-copy.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2023\/03\/Retirement-plans-for-businesses-copy.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/taxprocenter.proconnect.intuit.com\/wp-content\/uploads\/2023\/03\/Retirement-plans-for-businesses-copy.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/posts\/14629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/users\/144648925"}],"replies":[{"embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/comments?post=14629"}],"version-history":[{"count":12,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/posts\/14629\/revisions"}],"predecessor-version":[{"id":15469,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/posts\/14629\/revisions\/15469"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/media\/9446"}],"wp:attachment":[{"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/media?parent=14629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/categories?post=14629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/tags?post=14629"},{"taxonomy":"intuit_collection","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/intuit_collection?post=14629"},{"taxonomy":"intuit_series","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/intuit_series?post=14629"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/accountants.intuit.com\/taxprocenter\/wp-json\/wp\/v2\/coauthors?post=14629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}