R2

Question 1

In an Employee Stock Purchase Plan - what are the two option for the exercise price?

Answer 1

1. The option price may not be less than the less of 85% of FMV of the stock when granted or exercised
2. The option cannot be exercised more than 27 months after the grant date

Question 2

How is the Gain or loss of personal use assets treated?

Answer 2

Personal use asset = Capital asset

Gain = Capital Gain 
Loss = nondeductible