Maxine sold shares of stock she acquired by exercising options granted to her under an employee stock purchase plan (ESPP). Her employer did not offer the shares at a discount, so the price she paid when she purchased the stock was the fair market value at the time. 

If Maxine sold the stock for a profit after meeting the holding period requirements, how should the difference between her basis and the sales price be reported on her tax return?

Answer rating: 100% (QA)

If Maxine sold the stock acquired through her employee stock purchase plan ESPP for a profit after m... View the full answer