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Old 04-21-2008, 07:19 PM
Arthur Kamlet
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Default Re: 1 year holding requirement reset when exercised ISOs converted due toacqusition?

In article <7819a8c6-e211-443c-aa35-47dd2370bd77[at]l25g2000prd.googlegroups.com> ,
cloudboy08 <feng.ma[at]gmail.com> wrote:
- quote -

> Dear all:
> Here is a question about incentive stock option. I know that in
> order for the gain on ISOs be treated as long term capital gain, it
> must be exercised and hold for more than 1 year (and be granted more
> than 2 years). My question is: if the company was acquired and the
> exercised ISOs converted to the new company's stock, will the
> converted stock be required to be held for another year in order to be
> qualified for long term capital gain? i.e., will the original holding
> period of the exercised ISOs be nullified if converted to another
> stock due to acquisition?



In most cases if the IRS has determined this is a tax-free exchange
of old stock for new, the dates carry over.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #-1  
Old 04-21-2008, 03:18 PM
cloudboy08
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Posts: n/a
Default 1 year holding requirement reset when exercised ISOs converted due toacqusition?

Dear all:

Here is a question about incentive stock option. I know that in
order for the gain on ISOs be treated as long term capital gain, it
must be exercised and hold for more than 1 year (and be granted more
than 2 years). My question is: if the company was acquired and the
exercised ISOs converted to the new company's stock, will the
converted stock be required to be held for another year in order to be
qualified for long term capital gain? i.e., will the original holding
period of the exercised ISOs be nullified if converted to another
stock due to acquisition?

Thanks a lot.

-Feng

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 

Tags
converted, due, exercised, holding, isos, requirement, reset, toacqusition, year
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