I'm not a CPA or tax attorney and this isn't financial advice.
My understanding is that the stock is acquired at the time when the stock options are exercised. The difference between the FMV at the time of exercise and the option strike price is considered income and shows up on the W-2.
IF you choose to exercise and hold AND the company is still a QSB at the time when you acquire the shares (the time of exercise) AND you hold the shares for 5 more years, then you can benefit from the QSBS exclusion on any gain from any further increase in the share price.
