Quote:
Originally Posted by stomachmonkey
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.
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That's kinda sorta what i thought but didn't want to risk looking foolish by being wrong. I know, when has that ever stopped me
I get a stock grant every year as part of a long term incentive program and it kills me on taxes.
Coincidentally i'm dealing with the IRS right now on an issue relating to it back in '16.
When the bonus matures and is distributed, the company sells off enough shares to cover the taxes and sells the rest to give to me the $$$.
I get it in a payroll check and the amount awarded is handled just like salary.
but the good ole IRS somehow decided that it was NOT already included, and wants me to pay taxes on it, Again.
For some reason they don't recognize that I received only a part of the grant because the rest was sold off .... TO PAY THEM!
And of course they want interest and penalties for under-reporting etc.
So I hired a pro who is crunching numbers and thinks he'll not only get them off my arse, but will put a few grand in my pocket from an amended return because I paid too much.
And that's good.