10-31-2017, 03:30 PM
There are a couple options. You can Sell All (at award) and it's regular income. You can Sell to Cover and it will sell enough shares to cover the estimated income tax (they're just tacked on the top of your cash in tax returns). Any sales you make later is taxable like capital gains (short term, long term, losses, etc.) on the difference in price between sale and original vest price. For example, you pay $20 in taxes on the original $100 grant and you sell it nine months later at $120 - you pay short term capital gains on the $20 you made. The last option is Do Nothing, which means you're gonna get a big tax bill at the end of year. I guess it could work if you think the stock is going to explode, but that's a pretty big gamble.
'76 911S | '14 328xi | '17 GTI | In memoriam: '08 848, '85 944
"Here, at last, is the cure for texting while driving. The millions of deaths which occur every year due to the iPhone’s ability to stream the Kim K/Ray-J video in 4G could all be avoided, every last one of them, if the government issued everyone a Seventies 911 and made sure they always left the house five minutes later than they’d wanted to. It would help if it could be made to rain as well. Full attention on the road. Guaranteed." -Jack Baruth
"Here, at last, is the cure for texting while driving. The millions of deaths which occur every year due to the iPhone’s ability to stream the Kim K/Ray-J video in 4G could all be avoided, every last one of them, if the government issued everyone a Seventies 911 and made sure they always left the house five minutes later than they’d wanted to. It would help if it could be made to rain as well. Full attention on the road. Guaranteed." -Jack Baruth