When Does The Capital Gains Holding Period For Shares Acquired Upon Exercise of a Warrant Start?
A question I am somewhat frequently asked is, when does my capital gains holding period start for shares acquired upon exercise of a warrant I received from a company in connection with an investment or a loan (i.e., not a warrant issued in consideration for services).
The answer to this question is that your capital gains holding period does not start until you exercise your warrant. (Unfortunately, there is some uncertainty as to whether the holding period starts on the day of the exercise of the warrant or the day after. See here.)
