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> Cashing out by the people who understand Twitter’s prospects best is an ominous sign for the company and adds to the very long list of concerns about its futu
by arasmussen 12y ago
> Cashing out by the people who understand Twitter’s prospects best is an ominous sign for the company and adds to the very long list of concerns about its future.
When you make many, many millions of dollars, you need to pay tax on it. Where do you think you get the money to pay the tax for it? You sell shares.
- ulfw 12y agoThe guy sold $60,000 worth of shares. Hardly a 'cashing out' in a big way.
- throwaway344 12y agoSomeone would only pay taxes on the stocks if they sold it, via capital gains. If they're just being taxed on income, they can use that income to pay their taxes. Or am I misunderstanding you?
- arasmussen 12y agoYou're misunderstanding how and when vested RSUs get taxed. Capital gains is the tax you pay on your profit from owning a stock (after owning it for over a year). When a company gives you shares/RSUs, that is income and you must pay income tax on that right when it vests and the company has IPO'd. See: http://business.time.com/2013/11/07/twitter-employees-will-owe-an-average-of-420000-in-taxes-after-ipo/ http://business.time.com/2013/11/07/twitter-employees-will-o...
- throwaway344 12y agoAh, sorry, I was misunderstanding the rules. Thanks!