Correction to ISO LTCG holding rule

[ccfrost]

I believe that the below claim on ISO LTCG holding rule is incorrect. It states that the holding period for early exercised shares with an 83(b) election starts on vest date, but I believe that it actually begins on the date of early exercise. Can you please double check this and remove the statement if you agree? I believe the period begins with early exercise for two reasons:

1. Another part of the document claims it: "Founders and very early employees will almost always want to do an 83(b) election upon the receipt of unvested shares, since the stock value is probably low. If the value is really low, and the taxes owed are not that great, you can make the election without having to pay much tax and start your capital gains holding period on the shares."
2. I checked with a tax lawyer.

Many people expect early exercise, together with an 83(b) election, will help them hold the stock long enough to qualify for long-term capital gains. While this is true for NSOs, a murky part of the rules on ISOs states that even with an 83(b) election, the capital gains holding period does not begin until the shares actually vest.

Cheers,
Chris