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by beagle3 5455 days ago
> if your shares were to rise above the transaction price, would you not be subject to capital gains tax on the gain?

Yes. The way the IRS views it, I was given a an ordinary income bonus which consisted of new shares, and which was valued at $Z during the grant (and taxed as such, at that second). From now on, I own shares, so capital treatment goes into the future. If the stocks drop, I will have capital loss when I sell them -- but I need some other capital gain to net against.