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RSUs are cash equivalent from tax purposes. They are taxed at market rate at vest time. If you sell at that moment and buy other stock it has the exact same L
by dasil003 5y ago
RSUs are cash equivalent from tax purposes. They are taxed at market rate at vest time. If you sell at that moment and buy other stock it has the exact same LTCG treatment. It’s also the same as if you are compensated in all cash and go buy stock with that.
- erik_seaberg 5y agoIt’s like cash if you got more when the share price is higher. It can also be a cash flow problem if you have to cover quarterly estimated tax in between trading windows. My day job sells and withholds 22% of my vesting RSUs, because that’s the statutory rate for supplemental wages, but I always owe about 10% more.