for the RSUs that were just vested .
if you sell now, you get charged higher tax bracket.
if you sell after a year, the tax is much less.
to wait a year or to sell now ? thoughts ?
14 replies (most recent on top)
@OWbb3of-4ufa needs to do some research on cloud market share and stop listening to what he/she hears from Oracle management. Best of luck with that Oracle stock!
Nobody in the F500 uses AWS, really? You are a total moron if you believe that. There is not a single F500 that doesn't use AWS!
" O will take out 25% (I believe) by selling some of the shares after they convert and deposit the remaining shares in your account. "
Actually, that number in my case was 37% withheld for federal, state, social security and medicare, and it was withheld by Fidelity, not Oracle.
Oracle cloud? You mean oracle cloud washing, right? The proportion of reported cloud revenues that are real is immaterial
Sounds like -4znz is trying to short ORCL stock. In real terms, ORCL is undervalued based on the performance of the Oracle Cloud. Much as you might not like to admit it, the Oracle Cloud is making inroads into industry at Fortune 500 companies where there is actually revenue to be gained. Nobody in the F500 uses AWS or Google for their cloud services as they're not targeted at the Oracle Cloud market segment. Investors should do their research to understand the Oracle Cloud strategy.
Oracle Cloud is a winner and only a fool would be against them succeeding big time. I own lots of ORCL stock.
SELL, SELL, SELL!!! WTF are you waiting for. The oracle share price is a product of fictional cloud sales, which fiction is totally unsustainable, when the bubble bursts it will go down to $5 per share. Only a total moron would continue to hold on to their shares/ options.
sell options now? or wait for layoffs to hit mainstream news and hope stock price goes up?
Learn how RSUs work.
You are taxed on vest for the full value. O will take out 25% (I believe) by selling some of the shares after they convert and deposit the remaining shares in your account. Which you can then sell immediately, or hold. You owe the taxes either way.
If, for example, you have 500 RSUs and they vested at $50 (let's keep the math simple) per IRS rules you just got $25k in regular income, taxed at whatever your effective rate is (fed, state, payroll). If the 25% O takes out automatically is lower than your effective rate, you'll owe the difference for the filing year. If it is more than your effective rate, you'll get it back (or applied to your tax balance as the case may be).
If you wait a year and sell at, for example, $55 (keep the math simple, don't get snarky over example numbers), you owe capital gains taxes on $5x500: $2500 in capital gains. For most people this will be taxed at 23.8% (20% capital gains and above a certain AGI another 3.8% for ObamaCare).
There's very little reason, usually, to not simply treat RSUs as a bonus and sell immediately on vest. Stock options are a completely different animal of course.
@cyl you pretty much nailed it here - especially this "Do you believe in that company's long term prospects"
More important than the tax rate is what you expect the stock to be worth a year from now. Are your investments overweight in a single company? Do you believe in that company's long term prospects? Check the insider trading filings too; do the executives believe in its long term prospects?
And since the stock really hasn't done much since the vesting you're not really looking at much of a difference in net here where tax schemes matter.
Short vs long term capital gain is at issue here - it is easy to calculate - this tax chart will help you:
www.taxesindepth.com/internal/images/short-vs-long-term-gains.png
You have to pay income tax on exercise price-offer price. Capital gains on exercise price-selling price whenever you sell
You only get "taxed" on the rise of the price after the vest; you've already paid on the vesting as straight income when you get the share. You seem very confused.
Im assuming you're playing short vs long term capgains.