What should we do with Uber stocks??

Google or14j
Nov 11 40 Comments

Wife has 8000 Rsu. Looks like our combined tax next year will be through the roof. North 70K based on combined income.

Should we sell Uber stocks to get the cash now. Or pay cash for taxes and keep uber stocks.

Any other means to reduce the tax burden?

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TOP 40 Comments
  • This comment was deleted by original commenter.

    • LinkedIn ifnsuscej
      Agree with Waze. How so little critical thinking?
      Nov 12
    • Expedia Group / Eng negotiat
      Seems like OP is not an engineer
      Nov 12
    • Google or14j
      OP
      Thanks Cruise appreciate the insight.
      Waze/ifn/nego - I agree with each of you, I am not as smart as you. Yep I am not an engineer and I always lacked critical thinking. I think it might be related to my adhd. Apologize if I bring the collective IQ/ intellect of this group down.
      Hope you feel better. But I'd also appreciate some help and insight if you guys can provide. I definitely lack the skills, hence asked the question right? Else I'd have dealt with it myself.
      Nov 12
    • Amazon Waze
      I agree that OP handled the criticism very well. +1 on Earns Trust.
      Nov 12
    • LinkedIn ifnsuscej
      +1 on taking criticism well!
      Nov 13
  • Twitter crackerja
    Definitely keep Uber stock. With their constant expensive new markets (Uber eats to compete with door crap) and constant subsidizing rides what could go wrong?
    Nov 11 0
  • OpenText UBERstock🤣
    Didn’t your wife already lose 4k shares from withholding tax? She doesn’t need to pay that much more taxes.
    Nov 11 7
    • Google or14j
      OP
      Uber withheld stocks equal to ~22% of tax amount. The rest will be taxed based on 8000*45 income on IPO day.
      Nov 11
    • OpenText UBERstock🤣
      I thought the remaining tax to pay is to make up for the fact that the withholding rate was too low. Being taxed on the 8000*45 seems like double tax to me.
      Nov 11
    • Google googa
      Did Uber sell the 22 percent stocks on ipo day or on lockup expiration day?
      Nov 12
    • LinkedIn ifnsuscej
      The answered is too nuanced for a sentence fragment. Don’t get your panties in a bunch
      Nov 12
    • Google or14j
      OP
      Agree with you opentext, the remaining tax is to make up for the lower withholding rate.
      Nov 12
  • Wayfair jacksmit
    That's about 220k in Uber stock. If you feel confident the company will do better than index funds, sell if necessary so that no more than 10% of your net worth is on one company.
    Nov 11 8
    • Google or14j
      OP
      Usually the company will withhold certain amount of stocks to account for taxes. At Uber I am told they withheld taxes upto 22% so the difference ( our tax rate 45% - 22%) is still due in April. Does that make any sense.
      Nov 12
    • Yeah or14j, cover the tax through selling the shares so even in the worst case you don’t have to use cash to cover the shares
      Nov 12
    • Google or14j
      OP
      That's what we're planning to do. Wanted the wisdom of the crowd.
      Nov 12
    • OceanX / Eng openureyes
      @wayfair
      Are you sure about that flat 3k is all that you can write off a year as investment losses, can you please site some sources?

      What if you lost all your income in a stock, would you still owe taxes ? If so, where will you get that money from if you already lost it all?
      Nov 14
    • Google or14j
      OP
      Yes flat 3K, unless you have capital gains. If you have capital gains then offset that with losses.
      Nov 14
  • Microsoft PkachuFace
    You’ll only pay tax if you sell. Is this noob hour?
    Nov 11 5
    • Google googa
      You are the noob here
      Nov 12
    • Google or14j
      OP
      You also pay for taxes on the total amount of stocks* value of stocks on IPO day.
      Usually the company will withhold certain amount of stocks to account for taxes. At Uber I am told they withheld taxes upto 22% so the difference ( our tax rate 45% - 22%) is still due in April.
      Nov 12
    • Google googa
      Considering the entire amount vests in one year you have various taxes that likely make the taxable fraction close to 50 percent
      Nov 12
    • Google or14j
      OP
      Yes it's close to 50 percent.
      Nov 12
    • Microsoft PkachuFace
      Ooh ok I’m the noob clearly 😂
      Sorry op.

      I feel like Uber is near the bottom. But that’s just me.
      Nov 12
  • Amazon / Eng SmkWdEvyDy
    If I gave you 220k right now, what would you do with it? Would you buy Uber stock? Invest in index funds? Down payment on a house?

    Do whatever that is. This is the exact same thing. Don't think of it as stocks, think of it as you have 220k to invest/spend.
    Nov 12 0
  • Cisco NnMk28
    Holddd
    Nov 11 0
  • Facebook 484d9r
    8000x28 = 224K. That is not a lot. I would dollar cost average this. I would not sell it all this year. But spread this over several months of 2019, 2020 and 2021. Given what Dara just said, the stock went down for non business reasons and will recover. If your wife still works at Uber she will probably get and vest more RSUs. Again a good reason to slowly sell and diversify.
    Nov 11 2
    • Google googa
      I wouldn't trust dara on this
      Nov 12
    • Microsoft LChereicum
      Dara made mistakes
      Nov 12
  • Tesla mkjs2019
    Do you need to reassess your withholdings so this doesn’t happen again next year?
    Nov 12 0
  • Jet GgcE62
    Talk to an accountant
    Nov 12 0
  • Intel Pointless4
    Would you still have a cash savings or a mutual fund/etf savings after paying your taxes? Or is most of your Net worth tied up in Uber stock?
    Nov 12 0
  • New / Eng
    Psynaptic

    New Eng

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    Psynapticmore
    I'd say, Google it first.

    Seriously though, in this case, crowd wisdom might be the best, after all, Uber is speculative, and it's important to see how others are speculating on it
    Nov 11 0

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