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Retirement Planning
Chapter 12: Deferred Compensation & Equity Compensation/ESPP QUALIFYING DISPOSITION
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Chapter Study Session

Chapter 12: Deferred Compensation & Equity Compensation

ESPP QUALIFYING DISPOSITION

01.Core Concepts

• If the employee holds the stock for at least: • Two years from the grant date, and one year from the exercise date • The employee’s gain will be partially ordinary income and partially long- term capital gain. • Ordinary Income = Gain attributable to discount at date of purchase • Long-term capital gain = Gain in excess of the ordinary income