CPA · Question 13 · Area 1: Individual Tax
A taxpayer receives 1,000 Restricted Stock Units (RSUs) from their employer. The RSUs vest in Year 1 when the stock price is $20. The taxpayer does not make an 83(b) election (not applicable to RSUs usually, but assuming standard RSU treatment). In Year 2, the taxpayer sells the stock for $30. What is the tax treatment?
Answer options:
Year 1: $0 income; Year 2: $30,000 capital gain.
Year 1: $20,000 capital gain; Year 2: $10,000 capital gain.
Year 1: $20,000 ordinary income; Year 2: $10,000 capital gain.
Year 1: $20,000 ordinary income; Year 2: $10,000 ordinary income.
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