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It’s a tax benefit, in a way. I live and work in Switzerland, here the tax is paid on vesting. So, if stocks are down when vested it’s beneficial for my tax bil
by notimetorelax 4y ago
It’s a tax benefit, in a way. I live and work in Switzerland, here the tax is paid on vesting. So, if stocks are down when vested it’s beneficial for my tax bill. I don’t mind waiting a year or more for them to go up again.
- boopboopbadoop 4y agoThat’s like saying you’d take 50k and pay 10k in tax, rather than have 100k and pay 20k in tax.
- searedsteak 4y agoIt's like paying 10k in tax over 100k, you just need to wait a year. At least, that's how I interpret the comment
- boopboopbadoop 4y agoBut then you’d owe tax on the 50k profit you made. Besides, nothing is ever guaranteed!
- notimetorelax 4y agoBasically I concur what searedsteak wrote. Would add that stock grant in the company is in number of shares and is paid out over 4 years. So, I really like low stock prices when they vest (taxable event), while capital gains is 0 for non professional investors. So, unless you intended to sell stock right out there’s no difference and only gain. I never sell shares of my company.
- Schweigi 4y agoSwitzerland doesn’t have capital gains tax except for professional stock traders. So there wouldn’t be any tax on the gain after vesting. But yeah it’s a gamble on the stock price that’s for sure.