A lot of people, especially those getting laid off by the thousand in tech at the moment, are paid in shares instead of cash
These people already get double taxed, once essentially when the share rights vest and are exercised (e.g. years after they are awarded) they’re taxed as income at the current value despite not having been sold. Then taxed again when sold, as capital gains
If you make a loss on your shares paid as income by the time they are sold, bad luck, you have to gamble on other stocks/assets and make a large win greater than your losses to ever see the tax back again
To me, that sounds like the risk you should have to take if you’re accepting shares as payment and holding onto them. The inital tax makes sense because it is effectively an income, then that value used as a benchmark for legitimate capital gains makes sense too. If it goes down then that’s just a loss due to the shares decreasing in value… You could always just sell them off when the vest…
Selling them off when they vest is subject to taxation as income at the point years after they’re awarded, down or up. You take the risk (not that you have a choice in the tech sector) and you get fucked both ways for it
ryannathans@aussie.zone 14 hours ago
A lot of people, especially those getting laid off by the thousand in tech at the moment, are paid in shares instead of cash
These people already get double taxed, once essentially when the share rights vest and are exercised (e.g. years after they are awarded) they’re taxed as income at the current value despite not having been sold. Then taxed again when sold, as capital gains
If you make a loss on your shares paid as income by the time they are sold, bad luck, you have to gamble on other stocks/assets and make a large win greater than your losses to ever see the tax back again
ShrimpCurler@lemmy.dbzer0.com 11 hours ago
To me, that sounds like the risk you should have to take if you’re accepting shares as payment and holding onto them. The inital tax makes sense because it is effectively an income, then that value used as a benchmark for legitimate capital gains makes sense too. If it goes down then that’s just a loss due to the shares decreasing in value… You could always just sell them off when the vest…
ryannathans@aussie.zone 5 hours ago
Selling them off when they vest is subject to taxation as income at the point years after they’re awarded, down or up. You take the risk (not that you have a choice in the tech sector) and you get fucked both ways for it