Tax question for Lyft folks
Congrats on your IPO. 🎉 This must be a very exciting time for you. It’s an exciting time for everyone in this space. 👍 Are any of you concerned that if LYFT continues to dip before the end of the lock-up period, then you might have a tax bill in excess of your personal proceeds from the IPO? Is your HR/leadership doing anything to calm such concerns?
Isnt the taxation done at time of when you can actually sell shares. If they sell the next day they will have no extra tax impact
No.
No. Tax burden occurs at IPO strike price regardless of lock up duration.
Curious too. Do they sell to cover taxes right away after IPO? What is the withholding percentage? 25% or something custom?
There is a default withholding percentage which is ~12% lower than actual for most of us. Not really concerned about the tax bill - the price would have to drop a lot
Happens, fitbit knows best. They probably find a solution like buyback etc