https://www.nbcnews.com/tech/tech-news/ex-uber-employees-are-being-surprised-big-tax-bills-they-n1233699 > Uber delivered shares to its employees on the day of its IPO in May 2019, meaning employees would be taxed at the price of $45 a share. But the employees were restricted from selling their shares for six months, by which point the price had fallen to around $27 a share. > Gallo, the lawyer representing the employee-shareholders, said that Uber should have delivered the shares when the lockup ended in November and that moving up the "settlement" date violated their contracts. Uber benefited by eliminating uncertainty around its compensation expenses, offloading tax risk onto employees, he said. #ipo #tax
A lawyer trying to make a few quick dollars
Huh? Don’t you just claim those as capital loss? Where’s the tax bill coming from?
You can only claim Capital loss once you sell the RSUs. The income tax on RSU vesting is still going to be calculated at the $45 vest price. So by restricting sale of vested RSUs, the employees who have not sold the shares still have to foot the Tax bills of RSU vesting
Are RSUs sold along with vesting to cover taxes... for this exact scenario where the stock price falls
Wait but isn’t release date being the same day as IPOs a common thing? It sucks that you can’t sell for 6 months, but that’s the same for all companies that have blackout dates for stock trading for all employees.
Why do I not feel any inkling of pity? 🥱
If I started vesting this year, but was granted pre IPO, does the same tax issue still apply?
No
What sucks is that all the folks who signed their separation papers kissed any claim goodbye with thst general release
Maybe if they were laid off. If you quit, there's nothing like that to sign.