Message Font: Serif | Sans-Serif
No. of Recommendations: 0
[[I hope that this is the proper board for this foolish Question. If not please advise my for future

Some companies "give" employees stock held within an Employee Stock Option Plan (ESOP) until
some future vesting date. After that date, the employee generally has one of two options: (a) sell the
stock through the company - in this case all profit is obviously short term, or (b) take the stock into
their own name. Under this latter case what are the initial tax ramifications? and the cost base of the
issued stock?]]

Read my post on "stock options" in the Taxes FAQ area for a discussion of taxes and stock options. This will give you a general overview of the tax situation. You can also check IRS Publication 550. Or you might try KAT's web site.

TMF Taxes

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area ( and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area ( Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.