re: Cashing out employee stock purchase plan

quote:

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an after-tax dollar amount

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When you cash out your shares from the plan, your company should give you a statement showing what your cost basis is for the shares for tax purposes.

For example if your cost basis is $10/share and you sell all of your shares at $12/share, you will have a taxable gain of $2/share. Whether the gains are long-term (max tax rate of 20%) or short term (taxed at your ordinary income marginal rate) will depend on how long you've owned the shares, both within the plan and after you withdraw the shares from the plan.