DISQUALIFYING DISPOSITION: EXAMPLE (2 of 2)
01.Core Concepts
AMTRegular TaxDate $0$0At Grant10-12-25 At Exercise:11-14-26 $6$0Taxable amount $8$2Basis At Sale:1-1-27 $6$6Sale price $8$2-B a s i s ($2)$4 OI*= Gain NOT > 2 years NOT > 1 year *Disqualifying disposition: lesser of gain or bargain element is OI. Any remaining gain over the bargain element is LT or ST capital gain, based on holding period from exercise.