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This is one thing I've struggled to understand. Scenario A: RSUs have an expiration date. RSUs you own expire before the company hits a liquidity event. Scena
by ridv 6y ago
This is one thing I've struggled to understand.
Scenario A: RSUs have an expiration date. RSUs you own expire before the company hits a liquidity event.
Scenario B: RSUs do not have an expiration date but the company goes bankrupt/dissolves and never hits a liquidity event.
Is one of these scenarios taxable and the other one not? One of my biggest fears about joining a startup (pre covid) was scenario A happening.
- fossuser 6y agoThis is my current possibly incorrect understanding: Scenario A there’s no tax, but the company is failing to hold up their end of the bargain and this would probably lead to everyone quitting or some sort of RSU regrant. Scenario B I think you’re taxed when they vest. If there’s no IPO then you don’t get any money.