Navigating the intersection of equity compensation and taxes can be challenging for tech professionals. Understanding how to manage your equity can lead to better financial outcomes.
Equity compensation often comes with vesting schedules that dictate when you can access your shares. Knowing when your shares vest can help you plan your tax strategy effectively.
“Timing your equity sales can have significant tax implications.”
When you sell your equity, it’s crucial to understand the tax implications. Long-term capital gains tax rates are generally lower than short-term rates, so holding onto your shares for more than a year can be beneficial.
