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Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.


ESPPs: Basics



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How is the fair market value of company common stock determined for calculating the discounted purchase price?
Fair market value is determined in a number of ways that vary from company to company. Some common measures include the given date's closing price, high/low average, or bid/ask average or the previous day's closing price or bid/ask average. The way the fair market value is determined will be stated in your plan document.
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