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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