Hacker News Reader

Parent Full thread

triceratops

> anyone young and trying to save

It says the first $250k is exempt. Not a lot of young savers pulling down $250k in cap gains annually.

View on HN

That was the FAANG stocks doing the thinking

I don't think FAANG young engineers earn $250k cap gains a year.

https://www.levels.fyi/

This is total income, not cap gains man.

when you sell your stonks, then that becomes capital gains

No it doesn't, unless stock grows much.

RSUs are ordinary income, not capital gains.

RSUs are taxed as ordinary income but when they vest they become (usually) class A shares. The sale of those shares will incur capital gains taxes, if there is a gain.

Sale at time of vest would have zero or likely negligible capital gain/loss, and then it's the same as any other income. Yes, if you hold the shares (much like buying any other stock with your income), and it appreciates, you would have capital gains.

Re levels.fyi, the compensation figures are just time of vest.

So sell just enough to stay under the $250k/year in cap gains. I'm still not seeing a problem here.

Reply on news.ycombinator.com