Can someone help me understand the 3/1 Stock Together distribution? Is this the first time it was distributed as VZ stock and not just available to withdraw as cash? I notice it shows as a Short term investment, does this mean if I sell the shares, I am taxed at the short term rate? Thx.
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Selling Restricted Stock Units (RSUs) is often a "no-brainer" for many professionals, but the timing—selling at vest vs. holding for a year—is where the strategy matters.
Since RSUs are taxed as ordinary income the moment they vest, you’ve already "paid" for them at the current market price.
If you sell, keep track of your cost basis for tax time. If you sell before holding for a year you'll pay higher taxes than if you hold it. If you sell it at a loss you can take that loss as a deduction. If you sell at a profit this is where your cost basis is important you will only pay taxes on the earnings. So if you have 10 shares and sell it at $10 you don't pay taxes on the $100 you took, you'll only pay taxes on the amount you gained. So if your cost basis is $5 and you sold at $10 you only pay taxes on the $50 gained not the $100. Same thing with selling for a loss, you don't deduct what you take in, just what the loss is based on your cost basis. You have to do the math at tax time. Its not hard and online tax software does the work for you but you need to make sure you enter your number correctly.
@a3 everyone is still getting prior grants. The only thing up in the air is the 2026 grant.
@a9 thank you
This is the first grant done that way. The stock is sold, 22% federal is withheld on the sale amount. Then the proceeds are used to buy VZ stock. End of day close on Friday was 50.14 so that was your buy price. If you sell at $50.14, you pay no extra taxes, if you sell above or below you pay cap gains or capital loss respectively.
You pay income tax on value at vest (this was withheld)
You pay capital gains tax only on price change after vest.
Stock together automatically vests and sold for cash at the predefined dates - check your fidelity account to see the exact dates for distribution. Taxes are paid from the sale, cash to your brokerage fidelity account for you to do with as you wish.
@OP Yep.. capital gains tax.. but it really depends on if you sell for gain or loss. At a minimum it's a slight complication to your taxes unless you are currently buying/selling stock in a brokerage account then it's just another transaction
Good to see you're still getting it.