This guy is a gold mine. This is exactly what I had to deal with. Employers take the base 22% RSU and bonuses leaving you with tens of thousands unpaid by the end of the year.
Note that a risk of holding vested RSUs is that the stock price could fall 50% or more. I still have to pay taxes on last year’s inflated stock price before it fell. In my case, it’s thousands of dollars that was added on to my income and raised my tax bracket that I will potentially never see again. The government still takes their cut and taxes me at the higher amount. Tax loss harvesting would take years to recover the amount that I am being over taxed since it’s capped at $3,000.00 a year.
If you sell it when it's worth less can you claim a loss. So in your example you cost basis is 18K. And now you owe on the 6K in growth. If you sell it when it's worth 10K can you claim a 8K loss?
my company stock value almost doubled because of 2020-2021. definitely learned the hard way when tax season came around about the tax withholding when RSUs vest vs how much i would actually owe lol. too bad my company won't let us withhold more (or less) than the 22% on the RSUs, so it's been an interesting/fun game of withholding additional on my W4 and selling RSU/ESPP as time comes.
Great video and nice explanation. Morgan Stanley is my broker and they don't do a good job with the reporting to the IRS. They reported the RSUs I sold for taxes as income and I have the IRS now coming for more taxes over the RSUs I sold to pay taxes. How do you do to fix that issue? do you offer consultation?
Should you not have mentioned something about the time of selling? For example, if you choose to sell after 9 months of vesting you will be taxed differently from selling after 14 months?
Hi! Etrade usually provides something called a "supplemental" form that shows the basis used for adjustment. Or you can also do a history search based on a purchase date.
Love the slides and use of animation and layout, by far the best RSU explanation video so far.
this was the BEST explanation. the infographics were super helpful. thank you!
Thank you for great explaination
Beyond what I was looking for great explanation
When is it worth it to pay the tax upfront what percent of FMV would you want to see for it to be the better choice
Thank you for great explanation, I had all those questions in surprises recently.
This guy is a gold mine. This is exactly what I had to deal with. Employers take the base 22% RSU and bonuses leaving you with tens of thousands unpaid by the end of the year.
Excellent explanation
Note that a risk of holding vested RSUs is that the stock price could fall 50% or more. I still have to pay taxes on last year’s inflated stock price before it fell. In my case, it’s thousands of dollars that was added on to my income and raised my tax bracket that I will potentially never see again. The government still takes their cut and taxes me at the higher amount. Tax loss harvesting would take years to recover the amount that I am being over taxed since it’s capped at $3,000.00 a year.
If you sell it when it's worth less can you claim a loss. So in your example you cost basis is 18K. And now you owe on the 6K in growth. If you sell it when it's worth 10K can you claim a 8K loss?
my company stock value almost doubled because of 2020-2021. definitely learned the hard way when tax season came around about the tax withholding when RSUs vest vs how much i would actually owe lol. too bad my company won't let us withhold more (or less) than the 22% on the RSUs, so it's been an interesting/fun game of withholding additional on my W4 and selling RSU/ESPP as time comes.
Great video and nice explanation. Morgan Stanley is my broker and they don't do a good job with the reporting to the IRS. They reported the RSUs I sold for taxes as income and I have the IRS now coming for more taxes over the RSUs I sold to pay taxes. How do you do to fix that issue? do you offer consultation?
Great video! thank you for explaining in detail. Can we use 83(b) elections for RSUs though?
Usually, 83b election is not for RSUs. 83b elections are usually for stock options.
Should you not have mentioned something about the time of selling? For example, if you choose to sell after 9 months of vesting you will be taxed differently from selling after 14 months?
Great explanation. Government making bank smh
how do you adjust the basis when e*trade does not list it on the 1099B?
Hi! Etrade usually provides something called a "supplemental" form that shows the basis used for adjustment. Or you can also do a history search based on a purchase date.
5:28 you are left with 45 shares...