How did RSU taxation work for lyft’s IPO?
Apr 21, 2019
5 Comments
For the Lyft employees that got RSUs and were already over the vesting cliff how did taxation work? Was it sell to cover based on the IPO price sold to the underwriters?
comments
At IPO day, all bested shares would count as income at IPO price, Lyft case being $72/share. Your tax burden would be calculated and the correct number of shares, say 40%, would be sold to cover your taxes.
RSUs are far easier to deal with tax wise than options. When they vest, the full price on day of vest is taxed as regular income
p.s I will be interested in knowing this as well. It would be great if someone could explain with an example like
If someone accepted the offer with RSUs at 50 dollars. The ipo price was 100 and when the employee's stocks vested the RSU was at 40. How will the tax be calculated given that he was given 10,000 RSUs at the time of the offer.