Reply To: Non-Dividend Distributions

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#22021
esetter
Participant

I guess I could have asked the heart of this question more succinctly.

ISO grants more than 5 years old, were exercised in 2020. Late in the year, a non-dividend distribution was made that exceeded the ISO strike price. In addition to reducing the ISO shares’ basis to zero, is the excess per share distribution a short or long-term capital gain? I assume it’s short-term, but the shares weren’t actually sold.