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RSUs are taxed as soon as they vest. This means that employees with RSU grants are continuously accumulating illiquid but taxable income based on the company’s
by caf 10y ago
RSUs are taxed as soon as they vest. This means that employees with RSU grants are continuously accumulating illiquid but taxable income based on the company’s current fair market value. This can prove disastrous for employees who have already paid taxes on RSUs whose values have declined precipitously.
I wonder if you could introduce a kind of "Franked RSU" where the company pays the tax obligation at vesting (for certain agreed taxation jurisdictions)?
- hkmurakami 10y agoThere's nothing stopping companies from handing out bonuses hat match the tax obligation.
- hkmurakami 10y agoThere's nothing stopping companies from handing out bonuses hat match the tax obligation.
- cpitman 10y agoI'm no tax expert, but couldn't these losses be offset by Tax Loss Harvesting? It doesn't wipe them out, but does reduce the loss by approximately your top tax bracket.