Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,899,381,167 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Disqualifying Disposition

    0.01 sec.
Disqualifying Disposition
A sale or other transaction in stock that one acquired to an employee stock option plan within two years of enrollment in the plan or one year of purchase. The profit on a disqualifying disposition is not considered capital gains and is taxed like ordinary income, which is usually at a higher rate.

disqualifying disposition
The sale, gift, or exchange of stock acquired through an employee stock purchase plan within two years of enrollment or one year of the purchase date. A disqualifying disposition results in ordinary income for tax purposes.


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
This could have a negative result if the stock is sold as a disqualifying disposition, since ordinary income will be triggered as of the vesting date.
A disqualifying disposition occurs when the shares are held less than two years after the beginning of the offering period.
422(c)(2) limits the compensation income the employee must include as a result of the disqualifying disposition, to the excess (if any) of the amount realized on the disposition over the stock's adjusted basis.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.