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Qualifying Disposition
A transfer (e.g. a gift or a sale) of ISO or ESPP shares after the required holding periods of two years from the grant date and one year from the purchase/exercise date. For details about qualifying dispositions for each type of shares, see the sections ISOs: Taxes or ESPPs: Taxes. A transfer before the required holding periods have been met is called a disqualifying disposition, whether for ISO shares or ESPP shares.
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