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ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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What are the -term vs. short-term considerations when

Customer Question

What are the long-term vs. short-term considerations when selling stock from an employee stock purchase plan (ESPP)?
Submitted: 1 year ago.
Category: Tax
Expert:  Tyrone J. Taylor replied 1 year ago.

HelloCustomer

As a tax issue, any gains on stock held for one year or less is considered short-term capital gains. These gains are taxed at the ordinary income tax rate of the taxpayer.

Any gains in shares held longer than one year are considered long-term capital gains. These gains are taxed at 20% or less, depending on the income tax rate of the taxpayer. In some cases, the taxpayer may end up owning no taxes on these gains (if they are in the 10% or 15% tax bracket.)

I hope this answers your question satisfactorily. If you have any other questions, please let me know. If not, please kindly go ahead and rate my answer. Thank you and have a great weekend.

Customer: replied 1 year ago.
Tyrone,
I did not ask the question you answered. I do not know where the question: "What are the long-term vs. short-term considerations when selling stock from an employee stock purchase plan (ESPP)?" came from. As a result I can not rate your response.
Expert:  ShawnA replied 1 year ago.

The effect is the tax rate. Long-term considerations result in a lower tax rate. Shor term considerations result in a higher tax. When I refer to considerations I refer to time period from acquisition to the sale period.

Expert:  ShawnA replied 1 year ago.

I'll also offer you a call (not at the $50 normal rate but a reduced rate with no time limit).