Quote:
Originally Posted by sammyg2
OK, I'm beginning to get it.
All the experience I have with cost basis related to STCG is based on purchase cost vs. sale price, I've never explored the possibility of claiming income from a grant as a form of salary.
IOW the question is way over my head. Good luck.
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According to MRM's link it seems to not matter a whole bunch. A restricted stock grant is considered a form of compensation and is pretty much taxed as straight income at whatever bracket the additional income it puts you in.
You can pay tax on the initial value then depending on gains or losses pay the delta or just pay on the realized gross gain at your personal tax rate.
Basically there is no way to really or materially offset the cost to acquire in order to lower the net earned income /reduce tax exposure.