Karlie receives 1,000 Restricted Stock Units (RSU's) from her employer (a publicly traded company) on 9/19/22.
Value of the company's shares on grant date (9/19/22): $100.00 per share
Vesting schedule: 25% per year on the anniversary date (9/19), starting with the first vesting date of 9/19/23.
Questions:
How much income must Karlie recognize on the grant date?
How much income must Karlie recognize on 12/31/22, the last day of the calendar year that she received the RSU's?
How much income must Karlie recognize on 9/19/23, the first vesting date, assuming that the stock price on this day is $90.00 per share?
If your answer to the immediately preceding question is something other than zero, what type of income is it (ordinary or LTCG)? [indicate 'N/A 'if the answer to immediately preceding question is zero]
On what date will Karlie fully vest in all of the RSU's?