Thanks, I thought maybe it had some other legal meaning. IRS uses an alternate form of English.
I’m clarifying all this because of a situation where a company is likely to be sold to a private firm, and all held shares sold in 2023. I have:
1. Regular purchased shares, long term.
2. ESPP shares, likely to be a mix of qualifying, disqualifying, with some short term.
3. RSU shares, some to be accelerated grants paid at sale.
so a mess, but profitable.
I had a few questions:
1. Short term gains can be offset by long term losses, only if they are in excess of long term gains?
2. Short term gains can be taxed up to the ordinary rate PLUS net investment income tax, if it applies-so that’s the highest rate in the tax code. I think RSUs when vested are ordinary income and not s short term gain.
