>>1124247This makes a lot of sense.
Individuals are taxed at the current trading price of stock units when given stock awards... But you haven't actually received any cash, you've only received a stock award.
Assume someone is given $1000 of stock units. They are taxed on $1000 of income as part of the stock grant. If you then sell it for $800 later, you've just received $800 cash, and you've lowered your taxable income by $200 by taking a loss.
I get sizable stock grants every 6 months from my employer Ive just never sold any so I've never actually though about this before but it def makes sense if you get massive stock grants like Elon or other CEOs
