CPAnet Forum: Stock dividend or Stock Option or Gift??

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Topic: Stock dividend or Stock Option or Gift?? (

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goldenbear170
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Posted: 17 Jul 2011 at 02:35 \| IP Logged

If a car company, as a benefit of employment, allows its employees to aquire new car from company inventory at any time the employee wants during the year for a price well below cost (say for $3000, where as current market price for the car is $18000), would this constitute a gift? OR an "excersizable" option (w/ employment the consideration), OR is it a dividend?

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Rani

cocacpa
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Posted: 17 Jul 2011 at 11:06 \| IP Logged

i think this is called "bargain purchases", the difference between $18000- $3000 = $15000 should be included in gross income (salaries and wages).

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