To receive favorable tax treatment when buying shares in an employee stock purchase plan,an employee can own no more than ____ of the voting power of the employer or ____ of the value of all shares of stock of the employer.

Question

Quizplus · Accepted Answer

According to the IRS, in order for an employee to receive favorable tax treatment when purchasing shares in an employee stock purchase plan, the employee must not own more than 5% of the voting power of the employer or 5% of the value of all shares of stock of the employer. Therefore, choice A is the correct answer.

To Receive Favorable Tax Treatment When Buying Shares in an Employee