• SpaceNoodle@lemmy.world
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    4 days ago

    Stock grants are taxed as regular income.

    Edit: downvotes from people who have no idea how stock, compensation, or taxes work, apparently.

      • SpaceNoodle@lemmy.world
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        4 days ago

        That is correct. It’s the same as paying taxes on each paycheck, not when your salary is promised.

    • qjkxbmwvz@startrek.website
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      4 days ago

      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).

      • SpaceNoodle@lemmy.world
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        4 days ago

        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).

    • howrar@lemmy.ca
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      4 days ago

      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?