Wife has 8000 Rsu. Looks like our combined tax next year will be through the roof. North 70K based on combined income. Should we sell Uber stocks to get the cash now. Or pay cash for taxes and keep uber stocks. Any other means to reduce the tax burden?
I'd say, Google it first. Seriously though, in this case, crowd wisdom might be the best, after all, Uber is speculative, and it's important to see how others are speculating on it
Thanks Cruise. Reminds me of my MBA finance 101. However, there is a difference as we did not buy it instead we got it as RSU, so that logic might not apply. There are many here who have 250K cash, but they're not in the same position as us cause we already have the stock without paying for it.
How did you get into Google with that much lack of logical thought? Did some one drop the Google hiring bar on the floor?
Holddd
That's about 220k in Uber stock. If you feel confident the company will do better than index funds, sell if necessary so that no more than 10% of your net worth is on one company.
I feel the company in long run will be better than Index. Was thinking about estimating the tax amount and selling the required amount to cover the tax. Holding the rest. So sell 70K hold 150K. Thoughts?
Keep in mind that you can only use 3k of investment loses per year as tax relief
Didn’t your wife already lose 4k shares from withholding tax? She doesn’t need to pay that much more taxes.
That's true I guess.
Absolutely, your amount is what you get after tax has been paid (using stocks) , you now have to pay tax only if it’s more than the price you got it for at the time of RSU vesting . So if you sell now you can claim a loss (though it’s limited to 3k per year)
8000x28 = 224K. That is not a lot. I would dollar cost average this. I would not sell it all this year. But spread this over several months of 2019, 2020 and 2021. Given what Dara just said, the stock went down for non business reasons and will recover. If your wife still works at Uber she will probably get and vest more RSUs. Again a good reason to slowly sell and diversify.
You’ll only pay tax if you sell. Is this noob hour?
You are the noob here
You also pay for taxes on the total amount of stocks* value of stocks on IPO day. Usually the company will withhold certain amount of stocks to account for taxes. At Uber I am told they withheld taxes upto 22% so the difference ( our tax rate 45% - 22%) is still due in April.
Would you still have a cash savings or a mutual fund/etf savings after paying your taxes? Or is most of your Net worth tied up in Uber stock?
Talk to an accountant
Definitely keep Uber stock. With their constant expensive new markets (Uber eats to compete with door crap) and constant subsidizing rides what could go wrong?