These will be treated as two separate transactions, even though you may never handle the cash.
When you sell the ESPP shares, you will realize the gain, including the bargain element, at the time of the sale. There is no tax benefit to re-invest the proceeds in an Exchange Traded Fund (ETF) or other investments.
The basis in your ETF will not include any of the bargain element from your ESPP, as they are two separate transactions.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
