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Is the Internal Revenue Code limit of $25,000 per calendar year for stock bought through an employee stock purchase program (ESPP) based on the discounted purchase price or the higher stock value?

April 26, 2017bought calendar code employee Internal limit revenue stock year

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Is the Internal Revenue Code limit of $25,000 per calendar year for stock bought through an employee stock purchase program (ESPP) based on the discounted purchase price or the higher stock value?

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Under the terms of an employee stock purchase plan, you cannot accrue the right to purchase more than $25,000 of stock, valued at market value on the day the option is granted, in any one calendar year. The limit is not based on the purchase price.