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   Esprit de Vore (aphyr@woof.group)'s status on Saturday, 20-Apr-2024 05:02:12 JST Esprit de Vore

   I keep seeing this post today so it might be a good time to remind folks that in the US stock grants and RSUs are considered income, and you are taxed on that income just like other forms of compensation. If you get a grant of stock with fair market value of $1M, you're taxed on $1M of income. RSUs, options, forward exercising, etc. shift around *when* and how you're taxed, but like... stock is not tax-free lol.

   https://mstdn.ca/@ned/112298407262329100

   • Embed this notice
     tech? no! man, see... (technomancy@icosahedron.website)'s status on Saturday, 20-Apr-2024 05:02:11 JST tech? no! man, see...

     in reply to

     @aphyr of all the things wrong with US tax law this is honestly ... pretty low down the list

     but at the same time, it's still undeniably a scam to trick employees into thinking they're getting something worthwhile when it's frequently worse than worthless

   • Embed this notice
     Esprit de Vore (aphyr@woof.group)'s status on Saturday, 20-Apr-2024 05:02:12 JST Esprit de Vore

     in reply to

     Again maybe this is a US vs Canada thing but in the US, capital gains and losses apply to the *difference* between basis price (what the stock was valued at when the company gave it to you) and sale price. You only get the illustrated scenario if the stock the company gives you has a nominal FMV of ~$0, and you go on to sell it for $1M.

     Aside--this is part of why startup options occasionally bankrupt employees! You can wind up owing huge tax bills on grants of illiquid or worthless stock.