Now uber, lyft and pinterest all go public. With a large number of stocks vested, how much tax do you owe? How much do you actually take home? I wonder if somebody can walk through an example. Thanks
Example for RSU:
Assume you have 10,000 shares of stocks vested on Lyft IPO day.
At $72 per share, they are worth $720,000. If Lyft withholds 25% (worth $180,000), then you would be awarded 7500 shares.
Assume you are taxed at a rate of 40%, your tax due would be $288,000 - $180,000=$108,000.
If the stock price goes down to $50 when the lockup window expires, then you need to sell another $108,000/$50=2160 shares to cover taxes.
Now you have 7500-2160=5340 shares left, and the total value would be $267,000. So, it's not as much as you thought.