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Taxation on stock?
I have two questions about a company giving you stock as an incentive to work for them. The stock usually doesn’t mature (you get control of it) until four or five years of continuous employment.
Would you pay taxes on the gain?
The reason I ask is quoting:
Ice
Yeah, but leave out the "not a taxpayer" part. There might be a time when you are actually "subject to and liable for" a tax. Remember, even though your wages are not taxable... "gains" are taxable. "Gains" is what "income" has been defined as. [emphasis mine]
Randy
TITLE 31 > SUBTITLE III > CHAPTER 31 > SUBCHAPTER II >
Sec. 3124. - Exemption from taxation
(a) Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. [emphasis mine] The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax, except -
My second question is what if you had the company give the stock to a nonprofit organization? Would you still have to pay taxes on it?
nralien
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