An RSU taxation example:
- Eddy Engineer has 1,000 shares that vest in April of 2022
- His company stock is trading at $10/share on the vesting date and this becomes Eddy's cost basis if he holds the shares
- Eddy will owe ordinary income taxes on $10,000 of RSU income in 2022 (1,000 shares vested x $10/share)
- If he holds his stock for two (2) more years and then sells it for $30/share, he will have a $20,000 capital gain ($30 – $10 x 1,000 shares)
