3 ms·

If the stock is given to you as income, you owe tax on the $$ value as though it was income. Ask anyone who works at Google or any of the big corps who give RSU

If the stock is given to you as income, you owe tax on the $$ value as though it was income. Ask anyone who works at Google or any of the big corps who give RSUs. The number of them that hit your account is always about 2/3 of the number which actually vested. The rest are withheld as taxes.

xyzzyz 4y ago
Again, you are talking about stocks. Options work completely differently. Unlike with RSUs, you don’t owe any tax on options when they vest, only when you actually exercise. I know how RSUs works, I have actually worked at Google for a number of years. Instead, you should ask someone who works at an earlier stage company how options work.
- danielmarkbruce 4y ago
  Yes, I am talking about stock, in response to: >> If you hold actual stocks, there is no tax bill until you sell these to realize the gains There are taxes to be paid as soon as you get the stock. If you are at google - have you noticed the number of RSUs which hit your schwab account are less than those which vested according to that chart in your schedule? That's taxes being withheld. The stock vesting is considered income at that moment and taxed as such.
- polishdude20 4y ago
  I may be woefully misunderstanding here but say you exercise your options, sell them then get real cash for the sale all in the same day. Can you use that cash to pay your taxes when tax season comes around?
  - danielmarkbruce 4y ago
    You can use whatever cash you have to pay your taxes.
  - akhosravian 4y ago
    Yes. The problem is there are various reasons why you can’t just sell stock or an early stage company the same day.
- kgwgk 4y ago
  Note that the 3.5bn (withholding) tax under discussion is not about options. It's about RSUs. (There is also a less important amount of tax due - by more ancient employees - which is about options.)

3 ms·

If the stock is given to you as income, you owe tax on the $$ value as though it was income. Ask anyone who works at Google or any of the big corps who give RSU

by danielmarkbruce 4y ago

xyzzyz 4y ago
Again, you are talking about stocks. Options work completely differently. Unlike with RSUs, you don’t owe any tax on options when they vest, only when you actually exercise. I know how RSUs works, I have actually worked at Google for a number of years. Instead, you should ask someone who works at an earlier stage company how options work.
- danielmarkbruce 4y ago
  Yes, I am talking about stock, in response to: >> If you hold actual stocks, there is no tax bill until you sell these to realize the gains There are taxes to be paid as soon as you get the stock. If you are at google - have you noticed the number of RSUs which hit your schwab account are less than those which vested according to that chart in your schedule? That's taxes being withheld. The stock vesting is considered income at that moment and taxed as such.
- polishdude20 4y ago
  I may be woefully misunderstanding here but say you exercise your options, sell them then get real cash for the sale all in the same day. Can you use that cash to pay your taxes when tax season comes around?
  - danielmarkbruce 4y ago
    You can use whatever cash you have to pay your taxes.
  - akhosravian 4y ago
    Yes. The problem is there are various reasons why you can’t just sell stock or an early stage company the same day.
- kgwgk 4y ago
  Note that the 3.5bn (withholding) tax under discussion is not about options. It's about RSUs. (There is also a less important amount of tax due - by more ancient employees - which is about options.)