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Financial Planning / Tax Strategies


Subject:  Company Stock Bonus Date:  12/5/1997  3:02 PM
Author:  knowledgeseeker Number:  829 of 127549

Annually the company I work for purchases shares of its own stock at the beginning of the year at a discount. It then distributes these shares to its employees as a bonus at the end of the year at market value. What is my tax basis in the shares of stock I receive as a bonus? Since it cost me nothing to receive this stock, would it be considered a capital gain or ordinary income? At what tax rate?
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