3 ms·

It mostly is with RSUs. Stock options are far more complicated.

• hkmurakami 10y ago
  Even with RSUs, you'd have a tax obligation on illiquid RSUs if not for the terminology used in the contract to delay the actual "vesting event" in order to delay a tax event.
  • mgummelt 10y ago
    My understanding is that taxes for RSUs are typically withheld. See https://blog.wealthfront.com/stock-options-versus-rsu/ https://blog.wealthfront.com/stock-options-versus-rsu/
    • marcins 10y ago
      Depends on where you are - I believe that's the case in the US, but for example in Australia when RSUs fully vest the value at vesting is included as income on your tax return at the end of that financial year, so you don't actually pay the tax until after you file and are assessed.
    • hkmurakami 10y ago
      Right, they're withheld due to adding a clause to achieve this. Without that workaround, RSUs would intrinsically trigger a tax event.