My new Money Making scheem

C

Chapdog

Abreast of the situations
IM eligible for an ESPP starting January 1. Problem is I cant afford to invest in it.. and its unfortunate. The way it works is u can invest up to 7500 semi annually.. you get two stock prices. Jan 1 and June 30th. you then get 15% discount on the lower of those two prices and can sell July 1st.

Last year that 7500 would sell as 12k.. thats a 62% increase in 6 months.


so what i intend to do is borrow from government.. aka i will change my W4 form withholdings so that i have $1250 a month less withheld. i will then owe at end of year..

sound good?
 
That $15K that you'll owe in taxes through hte end of the year right? Is that going to get you a penalty?
 
LadyT said:
That $15K that you'll owe in taxes through hte end of the year right? Is that going to get you a penalty?
Click to expand...

thats what i have to look into.. im not going to be paying late. i will pay out of ESPP plan April 1st 09
 
I'd definitely make sure you take advantage of it. Its free money at the end of the day. If hte penalty won't be too stiff, or if you pay your owed taxes in a lump sum after you sell I say go for it. But like you said, the main thing is the penalty. If the penalty will out weigh the benefits then you have your answer.
 
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