What's my tax rate on vested stocks?

[Secure Da Bag]

If after a year of being at a company, i get my 20% of vested stocks and sell the stocks 2 days later.

Do I get hit with:

• a short-term capital gains tax (37%) or
• a long-term capital gains tax (20%)?

In other words, does the 1 year of ownership of the stock start:

• on the 1st day of employment or
• on the 1st day my stocks are vested?

 

[NZA]

there are different types of vested stocks, like RSUs tax you at the moment you receive them.

for any other stocks that are not immediately taxed, you may only have held the stock starting on the day they gave them to you. in order to get the best tax rate, you would have to hold them one day longer than a year from when you got them. if you got them jan 1st, you would have to hold them till jan 2nd of the next year to get the long term tax rate.

in order to be sure, log into the broker app and check the lot details. it will tell you exactly when they started counting your time of ownership and what tax status they are currently under