What is RSU vesting date?

Unlike RSAs, when shares are “owned” by the employee on the grant date, an RSU is a promise from the company to give an employee shares at a later date. The date you actually receive your RSU shares can be a vesting date, a liquidation event, a specified date in the future, or some combination of these.

Is a stock sale reportable based on trade date or settlement date?

In almost all situations, stock sales are reportable on the trade date. The only exception to this rule involves when you are closing a short position and settling for a loss.

How is tax calculated on restricted stock units?

How RSUs Are Taxed

1. Tax at vesting date is: # of shares vesting x price of shares = Income taxed in the current year.
2. Tax when shares are sold (if held beyond vesting date) is: (Sales price – price at vesting) x # of shares = Capital gain (or loss)

What is the acquired date for restricted stock?

For restricted stock, RSAs and RSUs it’s the vesting date that’s your acquisition date. For ESPPs it’s the date that the pot of money that’s been accumulating from your for some number of months is actually used to buy the stock.

Does RSU have expiration date?

RSUs are converted to shares once they are vested, and therefore do not expire. Options have a stated expiration date (often, but not always, 10 years from the date they are granted.) RSUs are taxed as ordinary income at the time they become vested and liquid. A stock option is taxed at the time it is exercised.

Is trade date or settlement date used for tax purposes?

In most cases, tax law considers the trade date as the date on which a gain or loss is recognized. If you sell a stock at a gain on December 31, you are responsible for any capital gains tax in the current tax year, even though the trade won’t settle until the next year.

What is date and trade date?

The trade date, which is the date that the order was executed, is the one that counts for tax purposes. The settlement date is just the date when the cash or securities from the transaction are plunked into your account.

Is Restricted Stock taxable?

Under normal federal income tax rules, an employee receiving a Restricted Stock Award is not taxed at the time of the grant (assuming no election under Section 83(b) has been made, as discussed below). Instead, the employee is taxed at vesting, when the restrictions lapse.

What is the difference between trade date and settlement date?

The first is the trade date, which marks the day an investor places the buy order in the market or on an exchange. The second is the settlement date, which marks the date and time the legal transfer of shares is actually executed between the buyer and seller.