Can gains from a disqualifying disposition offset capital losses?
September 10, 2001
Date: Sat, 25 Aug 2001
The private company that I work for just got acquired for cash. All of my ISO’s vest fully as a result, and the ISO transaction is considered a disqualifying disposition. Could the gains from this disposition offset my losses from the stock market?
Thanks for your help!
Date: Fri, 7 Sep 2001
The income from a disqualifying disposition of ISO stock generally may not be offset by capital losses from the sale of other stock. (In your case, it sounds like we’re dealing with a “same day sale” scenario.)