RSU

Mar 4, 2021 12 Comments

I have TAX question regarding RSU.
For example I will receive 10 RSU 100$ each, I need to pay TAX from 100$ xxxamount(25-30%)
After it vested we have 2 cases scenario
1 - stock go UP 150$ per share and when I’ll decide to sell I need to pay tax gain 50$, this is correct ?
2 stock go down 50$ per share and I decide to sell for loss, what about TAXES here ? Will I receive tax return ?
Thank you !!!#tax #irs #rsu #stock

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  • EA / Eng
    ENhz26

    Go to company page EA Eng

     ENhz26
    1. Correct, $50 is considered capital gain and you’ll pay tax based on how long you hold (short/long term capital gain)
    2. $50 considered as capital loss and you will not get tax return. But as normal capital loss, you can use it to offset your capital gains or ordinary income during taxable year
    Mar 4, 2021 6
  • Samsung
    SelfDriv3

    Go to company page Samsung

    SelfDriv3
    The day your RSU vests, it is considered as income. If you hold it, you’ll pay capital gains tax depending on when you sell. If you’ll sell it immediately on vesting, it will be added to your annual income and negligible capital gains tax. The only prices that matters is stock price on the day it vests and the day you sell. The price of RSU when it was granted does not matter.
    Mar 4, 2021 2
    • OP
      So what if after 6 months price stock goes down 50% and you decide to sell, there is no return on that I paid before when stock price was higher 50%?
      Mar 4, 2021
    • EA / Eng
      ENhz26

      Go to company page EA Eng

       ENhz26
      No, that’s how investment works. For example, if I buy XYZ stock for $100. I paid it with my money which comes from my salary which already paid some tax on it. If I lose $40 on that investment, I won’t get any return on the tax that I already paid for my $40 after tax money.
      Mar 4, 2021
  • Samsung
    SelfDriv3

    Go to company page Samsung

    SelfDriv3
    https://youtu.be/6z8yqsKGqz0
    Mar 4, 2021 0
  • Oracle
    dontbe_a😿

    Go to company page Oracle

    dontbe_a😿
    tax you pay on vest will be determined by the vest date and on rsu x price at vest. leftover is for you to keep or sell. in future when you sell these capital gains will be the difference from previous price and the new price. #2 cracked me up.You owe no taxes and you had a loss. Will follow same process as it would for your stocks in brokerage account
    Mar 4, 2021 0