Disposition of stock shares
A qualifying disposition of incentive stock options is one that meets the following standards: The final sale of the incentive stock options shares occurs at least two years after the grant date, AND The finale sale of the incentive stock option shares occurs at least one year after the incentive stock option was exercised. Your compensation income from ESPP shares in a qualifying disposition is the lesser of two amounts. The first is the discount allowed on your purchase, determined as of the “grant date,” which is normally the first day of the offering period. (Your company should inform you if a different grant date is used.)