3 ms·
What makes them unrealized? They are selling and realizing all the time, and get the massive unfair tax advantage of capital gains instead of income like for pe
by callalex 3y ago
What makes them unrealized? They are selling and realizing all the time, and get the massive unfair tax advantage of capital gains instead of income like for people that work for a living.
- pxx 3y agoErr equity compensation is not taxed as capital gains unless there's growth. Depending on how things are structured you pay taxes at different times but the value at grant is taxable as ordinary income. The only taxability difference is what to do with growth between grant and vest (and depends on when you pay the grant value's taxes). This is a common misunderstanding and sometimes causes people working at big companies to hold onto their RSUs needlessly even though they've already been taxed as ordinary income. In the RSU case you can't elect for different treatment on grant-vest gains, and it's very unclear if you would even want to.
- lotsofpulp 3y agoEquity compensation for earned income is subject to ordinary income tax, not capital gains tax.
- deleted 3y ago[deleted]