this post was submitted on 07 Dec 2024
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Stock grants are taxed as regular income.
Edit: downvotes from people who have no idea how stock, compensation, or taxes work, apparently.
Rsus have to vest and then they're taxed when they drop to your account.
That is correct. It's the same as paying taxes on each paycheck, not when your salary is promised.
Yeah people don't seem to understand taxes wrt stock at all. RSUs are definitely taxed!
Only thing I can think of is they're thinking of options? Afaik those can be advantageous, tax-wise, because you are taxed when you exercise, not when they're granted or when they vest (this is my understanding
I could be wrong).
Options are basically just a special price you get to pay for stock. There's another concept called "stock appreciation rights" in which shares are granted at a given strike price, and taxation only occurs on the price difference upon exercise (sale).
I thought founders usually get all their shares upon founding the company when it's worth next to nothing. Is that not how it works?
Who was talking about founders?
Founders usually end up in C-suite positions. That sounds like what independantiste was thinking about.
Maybe in Europe
I'm talking about the US, sweetie.
Thank you for the service
Search the Internet for RSU tax liability in the US. It's taxed as supplemental income and is subject to withholding.
Are you thinking of options? That's different
"stock grant" afaik almost always refers to an RSU grant/vest.