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Err 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 va
by pxx 3y ago
Err 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.