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Question
Is the sale of issued RSUs taxed as regular income?
AI accountant’s answer:

Yes, the sale of Restricted Stock Units (RSUs) is generally taxed as regular income. Here's how it works:

When your RSUs vest, they're considered income and are taxed at your ordinary income tax rate. The amount of income is based on the fair market value of the shares at the time they vest.

Later, when you sell the shares, you may also have to pay capital gains tax. If the value of the shares has increased since they vested, you'll owe capital gains tax on the difference between the sale price and the value at vesting. If you've held the shares for over a year, this will be taxed at the long-term capital gains rate, which is typically lower than the ordinary income tax rate. If you've held the shares for a year or less, it will be taxed at the short-term capital gains rate, which is the same as your ordinary income tax rate.

Remember, taxes can be complex and your situation may vary, so this is a general explanation.

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