Question in title. Someone told me 1.5 years, but just confirming. Gonna sell some before the impending sell off. Google says this, which I don't understand: "To get favorable long-term capital gains treatment, you have to hold the shares purchased under a Section 423 ESPP for more than one year from the purchase date and more than two years from the grant (or enrollment) date." Is it 1 year or two or 1.5? Tc: peanuts, yoe: 4
Impending sell off?? Where did you get this info?
I feel fairly certain it will happen either by end of this year ( like last year) or the next, especially if a democrat wins the election. Some people have been screaming recession since even 2 years, but the indicators have been accruing for a while now and seem concerning. Google searches for Dow, recession have been peaking especially since it is clear that China is no longer going to back off from the trade war, big economies have slowed down quite a bit (like Germany), debt for US has increased a lot, brexit uncertainty, etc. One or two incidents (like a Lehman Bros situation) could start a big selloff.
Lmao there is no parallel to 08 and today. A recession today would simply be a bubble burst and an overdue market correction. Much better than 08 where the rtardrd bankers decimated the insurance industry and nearly the global economy.
Was 2 years in the first company I worked for
2 years at our company or the discount is taxed as regular income. After that, I think it all become capital gains or losses
It’s a combination of two time periods - you have to meet both criteria to benefit from the long term gains: (1) 2 years from the offer date, and (2) 1 year from the purchase of the stock.
The sharpe ratio for that vs selling immediately is awful, especially considering that this is your employers stock. More after tax profit isn’t always a good thing. You need to consider risk and the time value of money.
1 year Google for shor-term gains aka short sellers.
Updated question, I know general capital gains becomes long term at 1 year, but espp seems to be more complicated
You can sell them right away and have free 15% in your pocket. Any gains above the price in your E*TRADE account will be taxed as usual.