kl <briankjlee[at]yahoo.com> wrote:

- quote -

Unless the rules have changed since Feb. 2000 when I last
researched this, the discount is to be included as ordinary
income in the year the disposition occurs. Also note that
even in the case of a qualifying disposition the discount is
always ordinary income.

See this thread for more:
http://groups.google.com/groups?thre...news.smart.net

--
Bill Claypool | Seeing is believing in the things you see.
claypool[at]ecs.csus.edu | Loving is believing in the ones you love.
RKBA! | -Margie Adam

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I thought I had this subject well understood ... but now
that I work for a different company, the tax consequences
are treated differently.

Before, the "spread" (e.g. 15%) would be accounted as W-2
income at the time I sold my stock (within 1 year holding).
So at the time I sold, the company finds out about it and
puts it in my W-2 by the end of the year.

Now, the "spread" is put into my W-2 at the time of the
purchase of the shares ... not at the time of the sale.
This doesn't make sense because then I wouldn't be able to
make it a "qualified disposition" and treat the spread as
capital gain since they already considered as part of my
W-2.

Can someone explain which way is the correct way?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->