Non Exxon tax preparer with a question. When an RSU reaches the Restricted Period Expiration can delivery be deferred? This would help to defer taxes. Thank you for your help.
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There is no actual shares transferred to you for RSUs at vesting. Stock price is determined upon vesting and you are paid the value of the RSUs less taxes into your designated payroll account.
RSUs are taxable income the year they vest. Generally they withhold 25% of the shares as tax withholdings. So if you start with 100 shares you end with 75. The day they best their investment value is set for capital gains. If you sell that day there is no capitol gain. If you hold the 2 years and then sell you pay capital gains or losses at the long term rate based on the vesting day value relative to the sale price.
This is free money don’t whine.
@ 1ufn+1nzNaI3V. If you’re getting RSU, you should be able to afford a CPA for tax advice. Blame the government and tax policy for as much of this as ExxonMobil.
Taxable when they vest...You can do reasonable tax planning because you have 3 and 7 year vesting periods.
If you are indeed a professional tax preparer, and you have to ask these questions. Honestly you are not qualified as a professional tax preparer.
The taxation of RSU is well documented, regardless of who grants the RSUs (ExxonMobil, Microsoft, Meta) and there are tons of publications available in the public (hey, there is something called Google).
I've collected these for several years and feels more like some unethical bribe than a real benefit.
Can you 'sell' your RSUs to some outside agent before they come due?
Like that annuity kid saying 'It's my money and I need it now'?
Tax gets deducted hence why you have fewer shares in your CompuShare account. Taxes are included as part of your W2 so you’ll be ok. You can immediately sell them like most people do since the stock doesn’t really have a lot of growth opportunity and better risk management to put in mutual funds so you don’t pay short term capital gains or take a loss.
No. The RSUs have caused me a lot of stress over the last several years. I am taxed on them which is not fair, and then I don’t know when I should sell them. I don’t want to sell if the stock is going to go up, but I don’t want to hold them if the stock is going to go down. If ExxonMobil cared about its employees, they would pay the taxes on the RSUs and have advisors who could advise when to sell.
No, the tax gets deducted and the mature stocks move to your compushare account post tax.
No!