[quote=flu][quote=SK in CV][quote=flu]
I’m getting killed absolutely at taxable income… Ever since companies switched over from stock options to RSU’s, I’m absolutely getting reamed. Shares that vest that I don’t sell end up getting counted as taxable income.. [/quote]
Any logical reason that RSU’s shouldn’t be treated this way? It’s yours. It can’t be taken back. It has value. You have to pay tax on it just like everyone else who gets cash in their paycheck.[/quote]
(Waiting at the airport.)
How is that different from in-the-money vested stock options?
Suppose I had 1000 shares of ISO stock options that with strike price of $50/share that vested today when the FMV of QCOM stock is $77/share, for which I exercise but don’t sell.
How is this any different than if I had 350 shares of RSU’s that vested today @ $77/share, but don’t sell?[/quote]
It’s not different but one is deffer-able and the other one isn’t. Some tax breaks are better than just being able to deffer the taxes. I.e. primary homestead cap gains exemption versus a 1031 exchange.
Above average to high W2-income is the easiest minority group with deep pockets to go after. Expect it to get worse so maybe you’re better off with the RSU that get taxed right away than deferring it into the future.
Your only choice is to work less and live with less.