This was essentially my question on ESPP.
"One thing to keep in mind is if the stock was an incentive stock option and you hold it for more than one year from the exercise date and two years from the grant date, the entire gain is capital gain, so you don't have to bother with the discount."
Just to verify as this is for ESPP which also has the concept of a grant date. The grant date where I worked is the date at which you are offered to buy stock at a fixed price or 15% less than market value if the stock price has fallen since the grant was made. Our ESPP works on a 2 year cycle with a bi-yearly buy schedule. If I understand grant date correctly, then if I hold the last buy of the grant for a year, then I exceed the grant date by 3 years and have also waited a year since the stock was purchased, so it will be counted as a long term cap gain and no need to worry about ordinary income from a W-2 and doing a cost adjustment. Correct? Thanks!
@ThomasM125
