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zpao | 12 years ago

AFAIK You're taxed on receiving stock as if it were income. This is regardless of if you sell it today, tomorrow, or never.

After that you're only taxed on gains. If you sold on the day of reception, then your gains/losses are likely minimal. Eg, receive at 50 sell at 50 = 0 gains/losses. Sell at 51 and you have $1*N gains. Those gains are taxed at a higher rate until a year after the stock appeared in your account. I think the difference is ~10% (35 vs 25 or so).

So there are definite tradeoffs between holding for the year vs selling immediately. This part is no different than buying/selling on the stock market.

tldr; yes, but not exactly

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