Tax responsibilities for a RSA | TigerDroppings.com
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cstev12
LSU Fan
Houston
Member since Mar 2010
661 posts

Tax responsibilities for a RSA

What are the tax responsibilities for a Restricted Stock Award.

Awarded shares in 2012 with 3 year agreement before being vested and transferred into my possession. Currently receiving dividends.

Once fully in my possession how will the taxes work?




chauncey1
LSU Fan
Member since May 2010
172 posts

re: Tax responsibilities for a RSA
Most people are given an option to pay the taxes or net settle. "Net settle" meaning you'll lose some shares to cover the taxes when it vests.
You won't be responsible for the taxes till the vesting year.
The value will be at the stock price when it vests.
Dividends depend on how it's set up. I've seen it a couple of ways. Most likely you will owe on the year the dividends hit the account. Most of the time the dividends aren't that substantial.


cstev12
LSU Fan
Houston
Member since Mar 2010
661 posts

re: Tax responsibilities for a RSA
So will it be taxed as capital gains or taxable income?



chauncey1
LSU Fan
Member since May 2010
172 posts

re: Tax responsibilities for a RSA
Taxable income, but you could have capital gains if you hold the stock and sell it for a profit above the vesting price.


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