| Topic Name: |
Salary Negotiations |
| Message Name: |
No tax hit on stock |
| Date Posted: |
03/05/2006 |
| In Reply To: |
There are certain non-managers being offered "restricted" stock.
Basically, a certain allotted amount of stock is set aside for these people and after 4 years, Home Depot will transfer ownership of the stock to the individual. At that point the individual will take a tax hit on the value of the stock, but will own all of it free and clear. |
| Message: |
Stock is not taxed until it is sold. it is not like regular income. The tax rate is determined by the selling price, not the value. So the tax hit is not realized at the 4-year vesting unless the individual immediately sells the stock for a profit.
|
|
