Closed hubert667 closed 5 years ago
ncortines
commented
6 years ago @hubert667 , that's interesting. In my case I have both records generated ("Release" and "Release Shared") having the same dates and amounts. I tested the script before and after the changes introduced in #5, and I obtained the exact same results. Can you please compare the results by running both versions of the script?
ncortines
commented
6 years ago On the other hand, in my case Shares Withheld is always 0. Do you get something different? That's interesting
ncortines
commented
6 years ago I would like to understand these:
sanchin
commented
6 years ago I also have both "Release" and "Release Shared" with 0 shares withheld. The tax amount is in "IRS Withholding" and is connected with dividends and their reinvestment.
@hubert667 The "net count" of shares is actually equal to "gross count" since stock release is not subject to tax as far as I know.
ncortines
commented
6 years ago @sanchin , do you get the same results before and after #5?
hubert667
commented
6 years ago @ncortines I get different results before and after #5 (did not check it right now but one year ago it was working fine and back then I had identical situation: Release and Release Shared were not equal). Also I checked in the console that new version lists Release Shared instead of Release which is not the same for me)
"stock release is not subject to tax as far as I know." As far as I know it is. It is not withheld in Poland and you need to pay yourself.
"Why some people have "Shares Withheld" and some people don't" In some countries tax is withheld so they will take some of your shares during release for a tax. In Poland it is not the case but If you relocate between countries then tax may still be withheld until the end of the 5 years vesting period depending on the law.
sanchin
commented
6 years ago @ncortines Yes, I have exactly the same results in both cases. @hubert667 I meant - it's not subject to tax in the States as a foreigner but it's considered your income in Poland so as you said - you have to pay it yourself. Within States perhaps it is, but then you wouldn't be submitting polish PIT ;D Do you mean that some countries have fixed rates in that case? And Morgan knows about them and withholds the proper amount automatically? In Poland it's impossible since you can be either in the 18% or 32% income tax level
ncortines
commented
6 years ago @hubert667 , what is the correct algorithm in your opinion, taking under consideration some people have "Release" and "Release Shared" records, and some people have only "Release Shared" records? Thanks
hubert667
commented
6 years ago "Do you mean that some countries have fixed rates in that case? And Morgan knows about them and withholds the proper amount automatically?" It is even more complicated than that. For example in the Netherlands they don't have fixed rates but still Morgan Stanley withholds some of the shares (usually more than it is needed for a tax). The next month they recalculate it and return you (in cash) the difference between the actual tax and the amount it was withheld.
"what is the correct algorithm in your opinion, taking under consideration some people have "Release" and "Release Shared" records, and some people have only "Release Shared" records?" I think for the tax calculation we should take "Release". If the "Release" is not present then "Release Shared" could be taken instead? That's just an idea as I also don't understand why some people have only "Release Shared".
ncortines
commented
5 years ago From 2018 there is no need to pay tax for "Release Shared" related stuff
This issue was introduced with the fix for #5
As the transaction type was changed from "Release" to "Release Shared" the script does not calculate correctly income in situations when there are shares which are withheld to cover the tax. In that case "Release" means all shares, and "Release Shared" means net shares released after taxation. I think (not sure about that) for tax purpose we need the full amount which is "Release", not "Release Shared".