How will Trump's tax reform impact current RSU holdings?
Seems like this is gonna be a major hit to how tech companies craft their offer packages but how will it impact people who already have RSUs?
If you're in California you'll only be able to deduct 10k in state income tax paid. Assuming you're making 130k+ this will ultimately mean your effective tax rate will go up due to smaller SALT deductions. This could be slightly offset by a lower marginal tax rate. Generally speaking if you live in California you will pay more in taxes, especially if you own a home. Of course this could change next week. Forgot you were asking about RSUs and not much changes at vest but how you ultimately pay at the end of the year will change as mentioned above.
I thought the same as you but anyone hitting amt previously should benefit from the new plan. If you were hitting amt, you couldn't deduct SALT anyways
Rsu is taxed as w2 so same as your cash. Make a little and you pay more, make a lot and you pay less. Looks that simple so far.