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Subject:   Holding Period
Date:   Thu, 19 Feb 2004
From:   Diana

If someone purchases an ISO and is holding to qualify for the tax preference - can he put the shares in a revocable trust?

Thank you!!
Diana

Answer

Date:   Thu, 04 Mar 2004

Hello Diana,

Yes. A revocable trust is a "disregarded entity" for income tax reporting purposes, so the grantor is considered to continue owning the stock.

Good luck!

Mike Gray

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IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.