DenverCraig
Dryer sheet aficionado
Hi There,
This is definitely a question for my accountant but I'll give this group a shot anyway.
My 2nd to last batch of RSUs vest next week. (I'm thinking very seriously about not waiting another year for the last batch, but that's a different thread). So when the RSUs vest they sell enough of the vesting shares to cover the tax, since the shares are considered "income" (there's a few ways to pay the tax, I've selected that one). The rest of the shares of stock show up in my brokerage account. If I sell them the day they show up I have to pay short term capital gains because I haven't held them for 1 year. BUT, if I sell them the same day, they will be effectively the same price as when I got them, so the appreciation will be zero or very close to zero, and as a result the short term capital gains tax will be zero or very close zero as well.
Am I understanding that correctly?
Thanks!
Craig
This is definitely a question for my accountant but I'll give this group a shot anyway.
My 2nd to last batch of RSUs vest next week. (I'm thinking very seriously about not waiting another year for the last batch, but that's a different thread). So when the RSUs vest they sell enough of the vesting shares to cover the tax, since the shares are considered "income" (there's a few ways to pay the tax, I've selected that one). The rest of the shares of stock show up in my brokerage account. If I sell them the day they show up I have to pay short term capital gains because I haven't held them for 1 year. BUT, if I sell them the same day, they will be effectively the same price as when I got them, so the appreciation will be zero or very close to zero, and as a result the short term capital gains tax will be zero or very close zero as well.
Am I understanding that correctly?
Thanks!
Craig