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      05-08-2013, 05:51 PM   #9
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Drives: 2007 335i Sedan, 2021 X3
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Simple you only paid taxes once you sell, but are the Option or RCU share they giving you and when do they vest immediately or over some people of time. Option and RCU have different tax issues. Now if are giving you the share outright then the tax is backed on the face value of the shares at the time they were giving to you. Once you sell then you subtract off basis which you already paid the taxes on when they gave them to you and pay the difference in tax assuming the value went up.

But I highly doubt you are getting preferred shock in a public trade company, maybe if you a founding member of a start up you were awarded preferred shares, but again there is usually no tax liability on that since it owner equity in the business and there are how set of other rules around that.

If you are in a position to get preferred share you should be hiring a tax accountant verse asking us all here since you probably sitting in a good position and you need to hire someone to avoid paying too much tax
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