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Someone 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 taxe
by throwaway344 12y ago
Someone 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!