ESPP Tax Strategies

ESPP Tax Strategies

  • (Typically) Sell ESPP Shares Upon Purchase. In the material majority of ESPP shares purchases, there are minimal or no tax benefits to be gained by holding shares, and selling the shares immediately is likely the best path to pursue

  • Hold ESPP Shares for a Qualifying Disposition. If you have a qualified ESPP program that offers a lookback provision and the shares increased during the offering period, holding for a qualifying disposition can provide preferential tax treatment

Cross-Listed Tax Strategies

In addition to the above ESPP tax strategies, a number of other tax strategies may also apply in certain situations. We encourage you to review the strategies detailed on the 50+ Tax Strategies page to ensure you have the proverbial "full menu" of tax planning strategies to consider for your situation.

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