Should I pay taxes in shares or cash?

SpaceX
ggbloke

Go to company page SpaceX

ggbloke
Apr 6 24 Comments

Lucky me, I get a hefty amount in SpaceX shares this year. Not so great: I gotta pay taxes on those things :/

I usually try to pay off the taxes in cash so I can get the full stock amount, but this time it’s $34k and that’s hard to come up with nowadays.

Should I take out a loan to pay for the taxes so I can get the full amount in shares, or should I allow the man to withhold some of my shares to pay for said taxes?

Is there something smarter I can do here? Thanks! #personalfinance #investments

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TOP 24 Comments
  • If you had received less shares, would you have taken out a loan to buy more of them? If not, then don’t.
    Apr 6 1
  • SpaceX / Eng
    bruhX

    Go to company page SpaceX Eng

    bruhX
    I’m in the same boat here, but I’m considering liquidating other stocks to fully cover the vest
    Apr 6 4
    • SpaceX
      jJJm62

      Go to company page SpaceX

      BIO
      10yoe+
      jJJm62
      Yeah my bad it looks like you said other stock. I did that last year. Don't forget you'll have to do this again next April if you stick with 22%. Sold about 20k of vanguard index funds before April 15th to cover the diff
      Apr 8
    • New
      uDwC06

      New

      uDwC06
      Obligatory mention that even though our stock may go to Mars, portfolio diversification is still important. Our compensation is already cash-light and stock-heavy. Going all-in is the SpaceX way but it's not necessarily the right approach for everyone in their personal finances (especially if you have a family).
      Apr 9
  • Meta
    ggho54

    Go to company page Meta

    ggho54
    I am confused
    Spacex isnt public yet, so how come that money is being taxed? 😳
    Apr 6 4
    • SpaceX / Eng
      bruhX

      Go to company page SpaceX Eng

      bruhX
      SpaceX facilitates liquidity events twice a year, so there is a way to sell them somewhat frequently
      Apr 6
    • SpaceX
      jJJm62

      Go to company page SpaceX

      BIO
      10yoe+
      jJJm62
      Some companies have "double trigger" RSU which are generally better since you can avoid paying tax on the vest date. But for SpaceX I think tax on vest is better because the thing about double trigger RSU is they technically also have an expiry date. I wouldn't trust an unscrupulous CEO with no intentions to IPO with that
      Apr 9
  • I am more than willing to pay for the taxes and buy those shares at a higher valuation. Dm me :)
    Apr 7 1
    • New
      uDwC06

      New

      uDwC06
      RSU stands for *restricted* stock unit.. you can't just sell the shares to anyone, only through SpaceX-approved liquidation events held roughly biannually
      Apr 9
  • Apple
    ndmC02

    Go to company page Apple

    ndmC02
    So… is this somehow a way to leak that spaced us ipo-ing soon?
    Apr 6 1