Stock we get from company signing bonus or rewards
RSU - Yes (during vesting) Espp - No
Yes, cost basis is 0, gain is the price at vesting, to be added to the income.
Tax already deducted for RSU grants when they vest. But will not before then (as they are not yet yours)
RSUs do when the vest (as income), then when you sell (as capital gains). I had to pay taxes one year when I had a retro-vesting schedule of almost 100k, then it was completely worthless when my company went under a few months later.
Yes. Vested stocks for the year, at the price they vested are income for the year. IRS doesn’t care you sold them or not. If you sell the versted stock for profit within one year of vesting, you will also pay short term gains tax only on the profit. If you sell vested stock in the future atleast after 1 year of vestinf for profit, you’ll pay long term gains tax only on the profit for that future tax year. Unvested stock incurs no tax. Unvested stock is not your money. Vested stock is essentially liquid cash. It doesnt matter if the company gave X dollars of vested stock or X dollars of cash. Your company will withhold tax on X by selling some of the X to pay IRS. Depending on your tax bracket you may have to pay more or get a refund later.
1. When ur company vests your rsu on behalf of you, they legally withhold a portion of rsu just like regular income. That portion is taxed. 2. The vested but unsold (meaning they are sitting in the brokerage account) is taxable when you file taxes in April. Your brokerage account will have a tax form mailed out to you, usually. Your w2 will also show the total compensation for the entire year. 3. As long as you don’t sell your vested rsu in the broker account, you son’t pay for any gain.
You won't get enough at msft where it matter
As soon as, the stocks gets vested, they are taxed as per you tax slabs. Some stocks are sold to compensate this tax. Now if you sell anytime after that, if sitting on profits, the profit will be taxed as per the duration of holdings.
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Yes. They're taxable supplemental wage income at vesting.
Stock we get from company signing bonus or rewards
When it vests