[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]
If you’re paying AMT, then it wouldn’t be much different at all. The difference between option strike price and value at date of vesting is subject to AMT. So you’d have to pay tax on the ISO value almost the same way you pay on the RSU’s.
