I'm new to Msft and this will be my first time doing ESPP. So basically on Mar 31st at 6:30am PT, I will need to login to Fidelity and buy Msft shares via Espp account then sell it right away? Thanks π¬
It will be purchased automatically. Selling immediately will guarantee a 10% profit since youβre buying stocks at a discount.
Selling immediately here means I can sell on the same day?
thatβs correct.
It will take a 2 to 6 days for the stocks to show up in your account. Yes you have to pay the capital gains if you sell it immediately. Say the price you got is 85% of closing date. You will sell for a price x say the price on 5th day it showed up in your account. You need to put in this 5 days gains/losses on your taxes..and the 15% discount shows up on w2. So gains= price on which you sold it- price you bought the stock(100% of the closing/starting date of espp)
You don't have to do anything. Shares will get automatically deposited to your brokerage account (the one that says individual) usually a couple days after. You can then go ahead and sell them
Wait so that means i have to pay the capital gains during those couple days? I thought i can sell immediately
For ESPP, you only pay capital gains on what you sell when you sell. You can sell immediately, but that would be short term capital gains and a higher %. If you hold and wait for long term capital gains, then itβs a lower %. Itβs up to you.