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I've been holding my stock purchase shares one year and selling. The idea behind holding one year was to take advantage of the capital gains tax rate.

First of all, you have the wash sale rule completely wrong. If you're subject to the rule, which applies to losses only, the loss is deferred and added to the cost basis of the stock purchased, which takes the purchase date of the stock sold. Gains are immediately recognized as a short term or long term capital gain.

Also, the 15% is ordinary income. I believe it goes on your W-2.

Second, the holding rule for your plan is not just one year from exercise of the stock, but also two years from the date of the option grant to become a long term gain. Have you been meeting the two year rule?
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