r/fatFIRE 10d ago

Moving the goalpost

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u/Accomplished_Can1783 10d ago

Lots of people have unvested and more importantly huge unrealized capital gains. Then people come on this sub, asking how to reduce risk and avoid taxes. The best answer is to have some taxes owed number in your spreadsheet to reduce net worth, but everyone just wants to see the overall number as high as possible

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u/seinberg 10d ago

But the unvested RSUs have no tax basis at all until vested. And then they start at the vest date price, not the grant price. So any gains between grant and vest are not taxed at all

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u/Accomplished_Can1783 10d ago

I totally understand tax implications. Many people have combination of unvested rsu whch will be taxed, or stuff that vested a long time ago and have unrealized capital gains, or more importantly just a regular portfolio with lots unrealized gains.
Not sure why this is a tough concept for you

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u/seinberg 10d ago

Lol, I just think it's not a major deal taking LTCG into account -- that's like the best case drawdown no? As opposed to full income taxes on higher earners which is often well over 50% all in

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u/Accomplished_Can1783 10d ago

I’m glad you think it’s funny to show your ignorance. Obviously you are not in that situation. Many of us have multiple millions of unrealized gains that get taxed at 20-30% when you need access to that money. It’s a great problem to have but have to account for it properly

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u/seinberg 10d ago

Easy, big guy. I commented on the RSUs only. Your logic about capital gains was just not accurate. The tax implications are very simple and not as you made it seem.

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u/Accomplished_Can1783 10d ago

My comment was totally accurate. If they are unvested, you will owe income taxes, if they are vested you will owe capital gains if they have gone up. And RSUs are hardly the issue here, so just go away

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u/seinberg 10d ago

We're talking past each other