The difference between the strike price of a stock option and the market price of the underlying stock when the option is exercised, times the number of shares purchased. The bargain element is not treated as capital gains, but rather as income received from the employer who granted the stock option, and is taxed differently depending on whether the stock option is a non-qualified stock option or an incentive stock option.
Related information about bargain element:
- What is bargain element? definition and meaning
Definition of bargain element: The difference between the strike price of a stock option and the market price of the underlying stock when the option is exercised, ...
- What is a Bargain Element?
Brief and Straightforward Guide: What is a Bargain Element?
- Exercising Nonqualified Stock Options
The bargain element in the exercise of an option is the difference between the value of the stock on the exercise date and the amount paid for the stock.
- Get The Most Out Of Employee Stock Options
The bargain element is calculated by subtracting the exercise price from the market price of ... The bargain element of a non-qualified stock option is considered ...
- Employee Stock Purchase Plans - TurboTax® Tax Tips & Videos
In this case, your employer will report the bargain element as compensation on your ... The bargain element is the difference between the exercise price and the ...
- Incentive Stock Options - TurboTax® Tax Tips & Videos
The amount reported is the bargain element, which is the difference between ... But if your bargain element is more than your actual gain from the sale of the ...
- Tax Implications of Exercising Stock Options | eHow.com
The taxable income is the “bargain element”—the difference between the cost to ... The bargain element is taxed as ordinary income and added to the W-2 of the ...
- Bargain Element | Equity Compensation Advisor
Feb 24, 2012 ... As a follow up from last week's blog, Overview of Employee Stock Purchase Plans (ESPPs), I would like to discuss the taxation of ESPPs.