My employer allows me to purchase company stock at a 15% discount from either the closing price on the first or last day of the quarter, whichever was lower. You must set how much you want deducted from each paycheck prior to the start of the quarter. Last quarter was the first time I participated and things went real well as the stock appreciated. I set aside $4000 during the quarter. The company stock price was $50.25 on the first day and $59.71 on the last day. Thus I purchased the stock at $42.7125 ($50.25 x .85) I sold the stock as soon as it made into my account on 4/3 at $59.81 for a gain of $1601.17. My question is how do I calculate the amount that will be subject to income tax and the amount that will be subject to capital gains? I unsure because of the dicounted purchase price and its affect on the cost basis. Also, do I need to file estimated taxes on this? I know this isn't official tax advice but any help would be appreciated. Thanks.
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