AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
ESPP Bargain Element
Posted by: mactoolsix, November 15, 2016 09:31PM
I have studied your wonderful book Consider Your Options (2010 edition) - thank you for such a comprehensive guide!

Page 233 you mention that if the price drops during the offering period drops, to use the higher price (thus less bargain element) to compute the compensation income.

Usually box 8 is the same as box 5, however we often see box 8 higher than box 5. For qualified dispositions, should we always use the higher of the two boxes to compute compensation income and basis?

Thank you

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