---
title: "Cashing Out Company Equity? Buy in Santa Cruz"
description: "Plan a Santa Cruz home purchase after an IPO, acquisition, or private-company tender offer. Understand stock taxes, financing, and your next steps."
url: https://giselesasso.com/guides/buying-a-home-after-a-liquidity-event
lastUpdated: 2026-10-12
---

# Cashing Out Company Equity? Buy in Santa Cruz

> A guide for tech employees planning a home purchase after an IPO, company sale, or tender offer.

## Know how much you can put toward a coastal home.

Start with cash you can use, money reserved for taxes, and the timing of your purchase.

A **liquidity event** can give you a chance to turn company equity into cash.
Examples include an IPO, a company sale, a tender offer, or another private share sale.
An announcement alone does not put that money in your account.

You may picture a weekday walk by the water or more space for family.
Start with three decisions that connect that life to a purchase:

1. **Usable cash:** [Follow the worked example](#a-worked-example-from-rsus-to-the-keys) from stock proceeds to tax reserves and purchase funds.
2. **Purchase funding:** [Compare cash and mortgage choices](#choose-how-to-buy), including the dates each option needs.
3. **Daily life:** [Test the address against your routine](#choose-the-life-then-test-the-address), before choosing a home.

New to buying in the US? Use the [first-home steps](#buying-your-first-us-home-start-here) when you need the purchase process.
The tax, title, and rental sections provide more detail for plans that need it.
You do not need to work through every strategy before we talk.

If you do not have advisers yet, you can still start.
Ask your employer which shares or awards you can sell and when you can receive payment.
Use the questions below to help you choose a tax adviser.

My family's story starts with a move from Brazil to the Bay Area in 2011, then Santa Cruz in 2015.
My experience as a first-time buyer shapes how I guide buyers today.
With support from Strock Real Estate, I help you choose neighborhoods, connect with local lenders, and coordinate the purchase.
Tax and legal advice stays with the specialists you choose.

<aside class="guide-callout" aria-label="Before the first offer">

**Start before the first offer.** Buying a personal home does not generally defer tax on a stock payout.
Useful opportunities have specific rules, dates, and eligibility tests.

</aside>

## A worked example: from RSUs to the keys

Imagine a household renting in San Francisco and buying its first primary home in Santa Cruz.
They want more time outdoors and room for visiting family.
They plan to use stock proceeds for part of the purchase and finance the rest.
This example follows RSUs paid in shares and then sold.
An acquisition payment or sale of shares you already own can have a different tax calculation.

<aside class="guide-callout" aria-label="Example assumptions">

**These amounts are fictional inputs for a cash-flow example.**
The withholding and extra tax reserve are assumptions, not calculated tax liabilities or recommended percentages.
Actual tax depends on the household's full return, including other income, filing status, deductions, and residency.
Assume no share-price change or trading fees between settlement and sale.

</aside>

### Follow the stock proceeds

<table class="guide-numeric">
  <caption>Example stock proceeds and tax reserve</caption>
  <thead>
    <tr><th scope="col">Step</th><th scope="col">Amount</th></tr>
  </thead>
  <tbody>
    <tr><th scope="row">RSU compensation</th><td>$2,000,000</td></tr>
    <tr><th scope="row">Tax withholding</th><td>$800,000</td></tr>
    <tr><th scope="row">Cash proceeds</th><td>$1,200,000</td></tr>
    <tr><th scope="row">Additional tax reserve</th><td>$200,000</td></tr>
    <tr class="guide-total"><th scope="row"><strong>Cash outside reserve</strong></th><td><strong>$1,000,000</strong></td></tr>
  </tbody>
</table>

20,000 RSUs settle at $100 per share, creating $2,000,000 in compensation.
The employer withholds 8,000 shares for tax withholding, equal to $800,000.
The household sells the remaining 12,000 shares at $100 for $1,200,000 in cash proceeds.
It sets aside an additional $200,000 tax reserve, leaving $1,000,000 outside that reserve.

The $800,000 is already withheld; it is not cash available for the home.
The separate $200,000 covers additional tax payments in this example.
Your tax adviser must calculate your actual reserve and payment dates.
Selling at the settlement value produces no additional capital gain here, under the stated assumptions.
[IRS compensation and basis guidance](https://www.irs.gov/publications/p525).

### Follow the purchase funds

Assume a $1,800,000 purchase with a $1,200,000 mortgage and a $600,000 down payment.
Loan approval still requires the lender's review of income, credit, assets, and the property.
The stock proceeds alone do not establish eligibility.

Assume $40,000 in total buyer costs beyond the price, including fees, prepaid items, and initial mortgage escrow funding.
Of that amount, $4,000 is paid before closing and $36,000 at closing.
Assume no seller or lender credits, or other adjustments.
These cost figures are placeholders, not Santa Cruz quotes.

<table class="guide-numeric">
  <caption>Example household cash paid for the purchase</caption>
  <thead>
    <tr><th scope="col">Step</th><th scope="col">Cash paid</th></tr>
  </thead>
  <tbody>
    <tr><th scope="row">Contract deposit</th><td>$54,000</td></tr>
    <tr><th scope="row">Pre-closing costs</th><td>$4,000</td></tr>
    <tr><th scope="row">Remaining down payment</th><td>$546,000</td></tr>
    <tr><th scope="row">Remaining buyer costs</th><td>$36,000</td></tr>
    <tr class="guide-total"><th scope="row"><strong>Cash to close</strong></th><td><strong>$582,000</strong></td></tr>
    <tr class="guide-total"><th scope="row"><strong>Total purchase cash</strong></th><td><strong>$640,000</strong></td></tr>
  </tbody>
</table>

The remaining down payment is $600,000 minus the $54,000 deposit: $546,000.
Final cash to close is $546,000 plus the $36,000 in remaining buyer costs: $582,000.
The deposit and $4,000 in costs paid before closing bring total household cash into the purchase to $640,000.

The deposit counts toward the down payment once.
It is not an extra $54,000 purchase cost.
The actual Closing Disclosure accounts for prior payments, credits, and adjustments.
[CFPB cash-to-close explanation](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/).

<aside class="guide-callout guide-callout-emphasis" aria-label="Example funds after the purchase">

**After the purchase, $360,000 remains outside the separate $200,000 tax reserve.**

That comes from $1,200,000 in proceeds, less $200,000 reserved and $640,000 used for the purchase.
Moving, repairs, ongoing ownership costs, and any lender reserve requirements still need their own plan.

</aside>

### Put the purchase and tax dates together

Use these stages to coordinate the purchase with your stock sale.
Your employer, lender, and purchase contract determine the actual dates.
Tax payment deadlines run alongside the purchase and can fall before or after closing.

<table>
  <caption>Purchase stages and tax deadlines</caption>
  <thead>
    <tr><th scope="col">Stage</th><th scope="col">Action</th></tr>
  </thead>
  <tbody>
    <tr><th scope="row">Before shares sell</th><td>Sale and financing</td></tr>
    <tr><th scope="row">At the sale</th><td>Cash and reserve</td></tr>
    <tr><th scope="row">Before the offer</th><td>Preapproval and funds</td></tr>
    <tr><th scope="row">Offer accepted</th><td>Contract deadlines</td></tr>
    <tr><th scope="row">During escrow</th><td>Reviews and approval</td></tr>
    <tr><th scope="row">At closing</th><td>Keys and move</td></tr>
    <tr><th scope="row">Tax deadlines</th><td>Required tax payments</td></tr>
  </tbody>
</table>

- **Before shares sell.** Confirm permitted sale dates. Review tax needs and mortgage eligibility.
- **At the sale.** Confirm settlement and receipt of sale proceeds. Reserve tax funds once cash is available.
- **Before the offer.** Obtain conditional preapproval and verify available purchase funds.
- **Offer accepted.** Follow the contract's deposit and review deadlines.
- **During escrow.** Complete inspections, insurance, title review, and final loan approval. Review the Closing Disclosure before signing.
- **At closing.** Complete closing and take possession under the contract. Arrange the rental move around confirmed dates.
- **Tax deadlines.** Pay each required estimated tax installment as your adviser calculates. Do not wait for closing.

Check the current federal and California payment calendars with your tax adviser.
Earlier income can create earlier payment obligations.
Ask whether the annualized income installment method fits an uneven payout.
This method accounts for when income arrives.
The adviser determines how much of the reserve to pay and how much to keep for the remaining tax bill.
[IRS estimated payment rules](https://www.irs.gov/publications/p505), [FTB payment calendar](https://www.ftb.ca.gov/pay/estimated-tax-payments.html).

## Start with your liquidity event

Choose the event that fits your situation, then follow the shared purchase steps below.
The company valuation and your available home budget are different numbers.

### IPO: confirm when you can sell

An initial public offering, or IPO, offers company shares to public investors.
Employee shares can remain subject to a **lockup**, an agreement that restricts sales for a period.
Your employer's permitted trading periods and award terms also matter.
Ask when your shares become available and when you can sell them.
[SEC IPO guidance](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-17), [SEC lockup guidance](https://www.investor.gov/introduction-investing/investing-basics/glossary/initial-public-offerings-lockup-agreements).

### Acquisition: confirm what you receive

A company purchase or merger can pay shareholders cash, shares in the buyer, or a combination.
Replacement shares are not automatically cash available for a down payment.
[SEC merger guidance](https://www.investor.gov/introduction-investing/investing-basics/glossary/mergers).

Ask your employer or transaction contact for the documents that answer:

- **Payment:** What cash or shares do I receive, and on what dates?
- **Conditions:** Is any payment held back, paid later, or dependent on future conditions?
- **Awards:** What happens to my unvested awards, options, and restricted stock units?
- **Employment:** Does any payment require continued employment or a separate agreement?

A qualifying corporate reorganization can defer gain on a stock exchange.
Cash received with replacement shares can still create taxable gain.
Do not assume every stock exchange qualifies, or that all acquisition payments are capital gains.
Ask your tax adviser to separate the sale of shares you own from employee compensation.
[IRS stock exchange rules](https://www.irs.gov/publications/p550), [IRS compensation rules](https://www.irs.gov/publications/p525).

### Tender offer or private stock sale: confirm the accepted sale

You do not need to wait for an IPO to receive money from company shares.
A company or outside buyer can offer to buy shares through a **tender offer**, open for a limited period.
[SEC tender offer guidance](https://www.investor.gov/introduction-investing/investing-basics/glossary/tender-offer).

Read the offer terms before making a home budget:

- **Eligibility:** Which employees, former employees, shares, or awards can participate?
- **Amount:** What can I offer for sale, and can the buyer accept fewer shares?
- **Dates:** When must I accept, and when does payment become available?
- **Costs and records:** What exercise costs, fees, withholding, and tax documents apply?

For another private sale, confirm company approval requirements and restrictions on transferring your shares.
Private shares can be difficult to resell.
Do not assume there will be another sale window to fund your home.
[SEC private securities guidance](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/private-placements-under-regulation-d-updated-investor-bulletin).

If the company buys back its own shares, ask whether the payment receives sale or dividend treatment.
The circumstances control that distinction.
[IRS stock redemption rules](https://www.irs.gov/publications/p550).

**For every event:** Confirm the accepted proceeds, required tax reserve, and payment date before promising funds toward a purchase.
Your lender then confirms which records establish that the money is available.

## Choose how to buy

Having enough cash gives you choices.
Compare the full borrowing cost, tax treatment, and flexibility you want after closing.

<p class="text-muted sm:hidden">Swipe across the table to compare the purchase requirements.</p>

<div class="overflow-x-auto focus-visible:outline-2 focus-visible:outline-heading [&_table]:min-w-[36rem]" role="region" aria-label="Home purchase financing choices" tabindex="0">

<table>
  <caption>Cash, mortgage, and later financing</caption>
  <thead>
    <tr>
      <th scope="col">Method</th>
      <th scope="col">Benefit</th>
      <th scope="col">Check first</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <th scope="row">Cash purchase</th>
      <td>No mortgage payment</td>
      <td>Tax and reserves</td>
    </tr>
    <tr>
      <th scope="row">Mortgage at purchase</th>
      <td>More available cash</td>
      <td>Approval and costs</td>
    </tr>
    <tr>
      <th scope="row">Cash, then mortgage</th>
      <td>Potential cash recovery</td>
      <td>Two deadline systems</td>
    </tr>
  </tbody>
</table>

</div>

- **Cash purchase.** No mortgage approval or monthly mortgage payment. Check which shares to sell, the resulting tax, and cash needed after closing.
- **Mortgage at purchase.** Keeps more cash available for other plans. Check accepted income, rate, fees, loan terms, and eligible interest deductions.
- **Cash, then a mortgage.** Funds the purchase first and can restore some cash later. Check refinance approval, proof of funds, costs, and both tax and lender deadlines.

### Cash now, mortgage later: two separate clocks

The tax rule and the lender rule answer different questions.

**The tax clock is 90 days.**
IRS rules can treat a qualifying mortgage obtained within 90 days of buying the home as acquisition debt.
This can preserve eligible interest treatment when the loan replenishes cash used for the purchase.
The home must secure the loan, and debt limits still apply.
IRS generally uses the disbursement date.
A qualifying written application date can apply instead if proceeds arrive within a reasonable time after approval.
Confirm that date with your tax adviser.
[IRS Publication 936](https://www.irs.gov/publications/p936).

**The lender clock can be six months.**
Fannie Mae's delayed financing exception covers qualifying cash purchases within the previous six months.
It requires an arm's-length purchase, documented funding, and other underwriting conditions.
Gift funds cannot be reimbursed, and cash-out refinance pricing applies.
[Fannie Mae delayed financing rules](https://selling-guide.fanniemae.com/sel/b2-1.3-03/cash-out-refinance-transactions).

**Illustration:** You pay cash and obtain a mortgage 60 days later.
The purchase can fit both timing rules if the other conditions hold.
At 120 days, it may still fit the lender window.
It generally misses this tax rule unless a qualifying earlier application date applies.
Agree on the schedule before closing; a later approval is not assured.

### Will a lender count RSU income?

A large stock balance and qualifying recurring income serve different purposes in a loan application.
Under Fannie Mae's RSU rules, shares must be vested, distributed, unrestricted, and publicly traded.
Time-based awards generally need 12 months of current-employer history.
The calculation uses stock price history and distributions, rather than a single day's share price.
Jumbo lenders can use different policies.
[Fannie Mae RSU income rules](https://selling-guide.fanniemae.com/sel/b3-3.3-07/restricted-stock-units-and-restricted-stock-employment-income).

Ask a lender to assess your records before relying on an IPO valuation for approval.

### What about borrowing against shares?

A securities-backed credit line can fund a purchase without selling the pledged shares immediately.
It does not remove tax already due on RSU compensation.
Falling share values can trigger a demand for more collateral or repayment, including forced sales.
Restricted or concentrated holdings may not qualify.
[FINRA securities-backed lending guidance](https://www.finra.org/investors/insights/securities-backed-lines-credit).

Ask how you repay the loan if the shares fall sharply.
A loan secured only by stock does not automatically qualify for home mortgage interest treatment.
[IRS secured debt rules](https://www.irs.gov/publications/p936).

## Choose the life, then test the address

Decide whether this is your primary home, a weekend home, or a future full-time move.
That choice affects financing, tax eligibility, and the neighborhoods worth exploring.

Build the search around an ordinary week:

- **Time by the water:** Walk the actual route from the home to the beach.
- **Work:** Test the drive on a day and at a time that match your office schedule.
- **Family:** Check school boundaries, activities, and the services your household uses.
- **A second home:** Plan maintenance, security, and the months you realistically visit.

Use the [neighborhood guides](/neighborhoods) to start a shortlist.
The [SF relocation guide](/guides/moving-from-san-francisco-to-santa-cruz) provides broader context for the move.
Then visit your preferred areas during a weekday and a weekend.
The aim is a home that fits the life you want after your liquidity event.

## Buying your first US home: start here

You can have the money for a home and still be new to the process.
You do not need a property picked out or a preapproval letter before our first conversation.
We can start with your plans for life here and the steps you need to take next.
Use the [Santa Cruz buying guide](/buy) for local purchase steps and costs.

<nav aria-label="First-home purchase steps">

1. [Documents and support](#1-prepare-your-documents-and-choose-your-support)
2. [Financing and preapproval](#2-confirm-your-financing-before-an-offer)
3. [The market and representation](#3-learn-the-market-and-agree-on-representation)
4. [Your offer](#4-build-an-offer-you-understand)
5. [Inspections and closing](#5-check-the-home-and-complete-the-purchase)
6. [The move from your rental](#6-coordinate-the-move-from-your-rental)

</nav>

### 1. Prepare your documents and choose your support

Tell me whether you want a full-time home, a weekend place, or time to explore both.
Bring your preferred timing and the questions you want answered.
Send private financial records directly to your lender or tax adviser through their secure process.

For a mortgage discussion, prepare:

- **Identity:** The identification and tax identification details your lender requests.
- **Income:** Recent pay statements, W-2 forms, and tax returns, as requested.
- **Assets and debts:** Recent bank and investment statements, plus details of outstanding loans.
- **Company stock:** Award agreements, vesting records, trading restrictions, and records of any sales.
- **Purchase funds:** Records showing where the money comes from, including transfers or gifts.

Ask the lender for a document list that fits your circumstances.
The exact records and history required vary by lender and loan.
[CFPB loan application checklist](https://www.consumerfinance.gov/owning-a-home/prepare/create-a-loan-application-packet/).

I can introduce local lenders and explain who handles each part of the purchase.
The [adviser section below](#build-your-team-and-prepare-your-questions) helps you start if you do not yet have tax or legal support.

### 2. Confirm your financing before an offer

**If you plan to borrow, request a preapproval.**
This is a lender's conditional indication of how much it may lend.
The lender reviews information about your income, assets, debts, and credit.
Ask which documents it checks, what assumptions it makes, and what still needs approval.
Lenders use the terms prequalification and preapproval differently.

A preapproval can support your offer, but it does not guarantee the loan or approve a particular home.
Confirm its expiration date and tell the lender how you plan to use your stock proceeds.
You can compare lenders; preapproval does not commit you to that lender.
[CFPB preapproval guidance](https://www.consumerfinance.gov/owning-a-home/explore/get-a-preapproval-letter/).

**If you plan to pay cash, prepare proof of available funds.**
Ask which bank or broker records the seller accepts.
Separate money available now from shares you cannot yet sell.
Confirm the tax reserve with your tax adviser before offering those proceeds toward a purchase.

**If you are new to US lending, raise these questions early:**

- With a short US credit history, which loan programs can assess my records?
- Which identity and residency documents does this lender need for the proposed loan?
- If funds are overseas, what translations, transfer records, and timing does the lender require?

US citizenship is not required for every mortgage program.
Fannie Mae permits eligible lawful permanent and non-permanent residents under the same terms available to US citizens.
The lender determines the required residency evidence, and other loan programs can have different rules.
[Fannie Mae borrower eligibility](https://selling-guide.fanniemae.com/sel/b2-2-02/non-us-citizen-borrower-eligibility-requirements).

For loans following Fannie Mae's foreign-asset rules, foreign documents need English versions or complete, accurate translations.
Funds must meet its US-dollar conversion, financial institution, and verification requirements before closing.
Ask your lender for the full transfer plan before moving money.
[Fannie Mae foreign-asset rules](https://selling-guide.fanniemae.com/sel/b3-4.2-05/foreign-assets).

### 3. Learn the market and agree on representation

We can compare neighborhoods around your daily routine, then review recent sales for homes similar to those you like.
An asking price tells you what a seller wants; completed sales help us assess the offer.
We also review the home's condition, property costs, and documents before deciding how to proceed.
[California homebuyer guidance](https://www.dre.ca.gov/consumers/informationforhomebuyers.html).

Before arranging tours together, review the buyer-broker representation agreement.
It defines the services, compensation, and length of the relationship.
Ask about exclusivity, cancellation, and when you owe a fee.
Compensation is negotiable.
A seller may agree to cover some or all of it, but that payment is not automatic.
[California DRE representation and compensation guidance](https://www.dre.ca.gov/Licensees/Advisory_2024_11_14_Changes_to_Buyer_Representation.html), [DRE agreement regulations](https://dre.ca.gov/files/pdf/relaw/2025/AB2992_Title_10_CalCodeofRegs29061_29063.pdf).

### 4. Build an offer you understand

An offer includes the price, deposit, proposed closing date, and any conditions protecting your purchase.
I help you review those terms and their deadlines before you sign.

- **Deposit:** Often called earnest money, this goes toward the purchase if it closes.
- **Down payment:** Your contribution to the purchase price when you use a mortgage. It is separate from closing costs.
- **Contingencies:** Contract conditions, such as satisfactory inspections, financing, or appraisal, that can provide cancellation rights under their terms.
- **Escrow:** A neutral party holds funds and documents and follows the transaction's written instructions.

The contract controls the deposit amount, payment deadline, and conditions for its return.
Do not assume you can cancel and recover it at any time.
Understand the consequences before removing a contingency.
[DRE first-home guide](https://www.dre.ca.gov/Consumers/FirstHomeCalifornia.html), [DRE offer and escrow guidance](https://www.dre.ca.gov/consumers/informationforhomebuyers.html).

Before an offer, confirm your funding evidence, deposit timing, tax reserve, and the purchase conditions you want.
Ask your lender or escrow officer for an estimate of closing costs and the total cash needed.
Use the [Santa Cruz closing costs breakdown](/buy/closing-costs-in-santa-cruz-county) to prepare your questions.

### 5. Check the home and complete the purchase

Once the seller accepts, several steps can run at the same time.
I coordinate the purchase schedule and help you track open questions.

- **Property review:** Read seller disclosures, which describe known property issues, and arrange appropriate inspections.
- **Inspection:** An inspector assesses the home's condition. Ask about any recommended specialist follow-up.
- **Appraisal:** A valuation helps the lender assess the home's value. It does not replace a condition inspection.
- **Title review:** Review ownership records and recorded claims or restrictions with the title provider.
- **Insurance:** Obtain coverage terms for the specific home while you can still act under your contract protections.
- **Final loan review:** Your lender verifies the borrower, funds, and property before approving and funding the loan.

Your contract determines the available protections and deadlines.
You choose whether to proceed after reviewing findings with the relevant professionals.
[CFPB inspection guidance](https://www.consumerfinance.gov/owning-a-home/close/schedule-a-home-inspection/), [CFPB closing steps](https://www.consumerfinance.gov/owning-a-home/close/).

Compare lenders using their official Loan Estimates, which show proposed loan terms and estimated costs.
For most home purchase mortgages, you receive a Closing Disclosure at least three business days before signing the loan.
It shows the final loan terms, closing costs, and cash to close.
Compare it with your latest Loan Estimate and resolve differences before signing.
[CFPB mortgage documents](https://www.consumerfinance.gov/ask-cfpb/what-documents-should-i-receive-before-closing-on-a-mortgage-loan-en-181/), [Closing Disclosure guide](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/).

Verify payment instructions directly with your escrow provider using a phone number you already trust.
Confirm any change before sending money.
[CFPB closing fraud guidance](https://www.consumerfinance.gov/archive/blog/mortgage-closing-scams-how-protect-yourself-and-your-closing-funds/).

### 6. Coordinate the move from your rental

Review your lease and confirm the notice requirements before choosing a move-out date.
Plan for possible overlap between rent and the home purchase.
Loan approval, signing, closing, and getting the keys can happen at different times.
Ask me and the escrow officer to confirm the closing and possession arrangements in your contract.
[DRE closing and possession guidance](https://www.dre.ca.gov/files/pdf/refbook/ref08.pdf).

Arrange movers, utilities, and insurance around confirmed dates.
Keep a backup plan if closing moves.
You can start planning while you rent; giving notice deserves its own decision once the purchase timing is clearer.

## Where planning can make a difference

Start with the opportunities that match your circumstances.
Each section below explains the benefit and the condition that controls it.

<p class="text-muted sm:hidden">Swipe across the table to see eligibility rules.</p>

<div class="overflow-x-auto focus-visible:outline-2 focus-visible:outline-heading [&_table]:min-w-[36rem]" role="region" aria-label="Tax planning opportunities" tabindex="0">

<table>
  <caption>Tax opportunities and eligibility</caption>
  <thead>
    <tr>
      <th scope="col">Situation</th>
      <th scope="col">Opportunity</th>
      <th scope="col">Rules</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <th scope="row">Later mortgage</th>
      <td>Eligible interest deduction</td>
      <td>Loan requirements</td>
    </tr>
    <tr>
      <th scope="row">Existing California home</th>
      <td>Assessment transfer</td>
      <td>Proposition 19 eligibility</td>
    </tr>
    <tr>
      <th scope="row">Main-home sale</th>
      <td>Qualifying gain exclusion</td>
      <td>Ownership and residence</td>
    </tr>
    <tr>
      <th scope="row">Charitable gift</th>
      <td>Appreciated-share donation</td>
      <td>Gift requirements</td>
    </tr>
  </tbody>
</table>

</div>

- **Later mortgage.** You want to pay cash, then add a mortgage. Preserve eligible mortgage interest deductions. Check loan timing, use, security, and debt limits.
- **Existing California home.** You own a California home and qualify for Proposition 19. Transfer an existing property tax assessment. Confirm age or other eligibility, primary residence, value, and deadlines.
- **Main-home sale.** You plan to sell your main home. Exclude qualifying home sale gain. Check ownership, residence, and prior exclusion history.
- **Charitable gift.** You already plan a charitable gift. Donate eligible appreciated shares before selling them. Check holding period, gift timing, deduction limits, and charity acceptance.

These benefits address different taxes.
A property tax transfer does not erase stock income.
A mortgage deduction reduces taxable income only to the extent allowed; it does not repay the interest.

## Make the decisions in this order

### Before shares become available

**Ask your employer for the actual dates.** Use the event checklist above to confirm the steps before payment.
For stock awards, **settlement** means the delivery of shares or cash under the award.
Confirm that date separately from any permitted sale and the date proceeds reach your account.

Identify your award type.
Restricted stock units, or RSUs, differ from restricted stock and stock options.
RSUs generally create wage income when shares transfer to you; deferred arrangements can change the timing.
An 83(b) election does not apply to an RSU grant.
[IRS equity compensation guidance](https://www.irs.gov/pub/irs-pdf/p5992.pdf) explains these distinctions.

Your award type changes the questions to ask:

- **RSUs:** Confirm the taxable transfer date, wage amount, and withholding.
- **Restricted shares:** Ask whether an 83(b) election applies. The election generally has a 30-day deadline after property transfers.
- **Nonqualified options:** Exercise usually creates compensation based on the spread between share value and exercise price.
- **Incentive stock options:** Exercise can trigger alternative minimum tax, even before a sale. Sale timing affects later treatment.

The alternative minimum tax, or AMT, uses a separate calculation that can produce additional tax.
[IRS stock option rules](https://www.irs.gov/taxtopics/tc427), [IRS restricted property rules](https://www.irs.gov/publications/p525).

**Ask a tax adviser to map the payout and any planned sales.**
Include other income, existing shares, charitable plans, and work performed in California.
Ask a lender which income and assets qualify before choosing a purchase date.

### When an award pays out or you sell shares

Keep compensation income separate from later investment gain.
For employee shares, basis generally includes what you pay plus compensation income you recognize for those shares.
**Tax basis** is the starting amount for calculating gain or loss.
For incentive stock options, ask your adviser to track regular-tax basis and alternative minimum tax basis separately.

**RSU illustration:** 20,000 shares transfer at $50 each.
That creates $1,000,000 of compensation and generally $1,000,000 of basis.
Selling those shares at $55 produces $100,000 of capital gain before fees.
The $1,100,000 proceeds are not all new capital gain.
[IRS Publication 525](https://www.irs.gov/publications/p525) covers compensation and basis.

Check the employer's records against the broker's tax statement.
A basis adjustment may be needed to avoid counting compensation twice.
[Fidelity's stock plan tax guide](https://www.fidelity.com/stock-plan-services/taxes-and-filing) explains the records to compare.

Holding shares for more than one year can change the treatment of later gain.
It does not change the earlier wages into capital gain.
California taxes capital gains at ordinary income rates.
[IRS capital gains guidance](https://www.irs.gov/taxtopics/tc409), [FTB capital gains guidance](https://www.ftb.ca.gov/file/personal/income-types/capital-gains-and-losses.html).

If the shares fall before sale, the resulting capital loss does not cancel the original wage income.
Capital losses first offset capital gains.
An unused net loss generally offsets only $3,000 of other income annually, or $1,500 for married filing separately.
Remaining losses generally carry forward.
This difference matters when keeping shares you also expect to use for a purchase.
[IRS capital loss rules](https://www.irs.gov/taxtopics/tc409).

**Confirm the tax payment plan before committing sale proceeds.**
Payroll withholding may not cover the final bill.
Federal rules can permit 22% withholding on supplemental wages, with 37% generally applying to the portion above $1,000,000 annually.
Those withholding rates do not determine your final tax rate.
[IRS employer tax guide](https://www.irs.gov/publications/p15).

California has a rule that matters in a large payout year.
An estimated tax **safe harbor** sets payment requirements that can protect you from an underpayment penalty.
It does not reduce the final tax you owe.
At California adjusted gross income of $1,000,000 or more, the prior-year estimated tax safe harbor generally disappears.
The threshold is $500,000 for married filing separately.
Ask your adviser about current-year payments and annualizing income from a late-year payout.
[FTB estimated tax rules](https://www.ftb.ca.gov/pay/estimated-tax-payments.html).

### Before making an offer

Choose the funding method with your lender and tax adviser.
Confirm that funds can reach escrow on time.
Keep the stock sale records and the full path of funds between accounts.
If you plan a later mortgage, agree on the documentation and schedule now.

## Check the tax opportunities

### First-time buyer benefits: check which rules apply

Buying your first US home does not automatically qualify you for assistance.
CalHFA programs have income, credit, occupancy, education, and other eligibility requirements.
A large payout may affect eligibility; ask an approved lender how the program counts your income.
Disclose previous homeownership, including property overseas, so the lender can apply the specific program's definition.
[CalHFA borrower requirements](https://www.calhfa.ca.gov/homebuyer/borrower.htm).

MyHome provides a deferred-payment loan for eligible down payment or closing costs.
It is not a grant.
Ask about interest, repayment triggers, and the effect of selling or refinancing before accepting assistance.
[CalHFA MyHome terms](https://www.calhfa.ca.gov/homebuyer/programs/myhome.htm).

A separate California benefit can apply to qualifying primary homes, including those owned by repeat buyers.
The homeowners' exemption reduces taxable property value by $7,000.
At the 1% base rate, that means $70 in annual base-tax savings.
Ask the county assessor about eligibility, filing dates, and treatment of a recent purchase.
[BOE homeowners' exemption](https://www.boe.ca.gov/proptaxes/homeowners_exemption.htm).

### Mortgage interest: compare federal and California rules

For a new qualifying home loan, federal rules generally limit acquisition debt to $750,000.
California generally retains a $1,000,000 acquisition debt limit.
The limits halve for married filing separately.
The federal limit covers qualifying debt across your main home and second home together.
[Federal mortgage interest law](https://www.law.cornell.edu/uscode/text/26/163), [FTB deduction adjustments](https://www.ftb.ca.gov/forms/2025/2025-540-ca-instructions.html).

**Illustration:** A couple files jointly and has one qualifying $1,200,000 loan at 6%.
Assume the balance and rate stay constant for a full year.
Of $72,000 interest, $45,000 may qualify federally before other limits.
California's acquisition-debt portion is $60,000 before other limits.
These are deduction amounts, not tax savings.
Itemization and high-income limits can reduce the benefit further.
[IRS calculation guidance](https://www.irs.gov/publications/p936), [federal high-income deduction limit](https://www.law.cornell.edu/uscode/text/26/68).

California also retains qualifying home-equity-debt treatment for up to $100,000 of additional debt, or $50,000 for married filing separately.
Ask whether excess acquisition borrowing qualifies under those rules and the home's value limit.
That can increase the California deduction beyond the acquisition-debt portion shown above.
[FTB Schedule CA, line 8](https://www.ftb.ca.gov/forms/2025/2025-540-ca-instructions.html), [IRS ruling on excess acquisition borrowing](https://www.irs.gov/irb/2010-44_IRB#RR-2010-25).

### Property tax: check Proposition 19 before selling

This can be a meaningful benefit for someone who already owns a California home.
Eligible owners can transfer an existing property tax assessment to a replacement primary home within California.
Eligibility includes age 55 or older, severe and permanent disability, or specified disaster circumstances.
The qualifying condition must apply when the original home sells.
[California Board of Equalization Proposition 19 guide](https://www.boe.ca.gov/prop19/).

The replacement generally must be bought or newly constructed within two years before or after the original home sells.
Higher replacement values can increase the transferred assessment.
The age and disability provisions allow up to three transfers.
File within three years of replacement purchase or construction for full retroactive relief.
[BOE homeowner guide](https://www.boe.ca.gov/pdf/pub801.pdf), [BOE claim timing](https://www.boe.ca.gov/proptaxes/pdf/lta22051.pdf).

**Illustration:** An eligible owner sells a $2,000,000 SF primary home with a $400,000 taxable assessment.
They buy a qualifying $1,800,000 Santa Cruz primary home and transfer that assessment.
At the 1% base rate, annual tax is $4,000 instead of $18,000.
That is a $14,000 annual base-tax difference.
This excludes bonds, parcel charges, interim bills, and later adjustments.
The same purchase as a second home does not qualify for this transfer.

### Selling your current home: a separate gain exclusion

Section 121 can exclude up to $250,000 of qualifying main-home gain, or $500,000 for qualifying joint filers.
Ownership and residence tests generally use two years within the five years before sale.
Joint filers have additional requirements, and prior exclusions can affect eligibility.
You do not need to reinvest the proceeds to claim the exclusion.
It applies to eligible home sale gain, not stock compensation.
[IRS Publication 523](https://www.irs.gov/publications/p523).

### Charitable shares: decide before selling

If charitable giving is already part of your plan, review a gift of eligible appreciated shares before selling them.
Shares held more than one year may support a fair-market-value deduction and avoid realizing their appreciation yourself.
The gift is irrevocable, and deduction limits apply.
Starting in 2026, federal itemizers generally face a 0.5% adjusted gross income floor for charitable deductions.
California does not follow this new federal floor.
A gift does not reverse wages recognized at RSU settlement.
[IRS charitable contributions guide](https://www.irs.gov/publications/p526), [IRS 2026 tax guidance](https://www.irs.gov/publications/p505), [FTB conformity analysis, section 70425](https://www.ftb.ca.gov/about-ftb/data-reports-plans/summary-of-federal-income-tax-changes/index.html).

### SALT deductions: the larger cap has an income limit

SALT means state and local taxes.
For 2026, the federal itemized deduction cap is $40,400 before the income-based reduction.
The reduction starts above $505,000 of modified adjusted gross income.
It reduces the cap by 30% of excess income, down to a $10,000 floor.
These amounts halve for married filing separately.
[IRS 2026 SALT correction](https://www.irs.gov/forms-pubs/correction-to-state-and-local-income-tax-deduction-amount-in-the-2026-form-1040-es), [SALT statute](https://www.law.cornell.edu/uscode/text/26/164).

For joint filers at $600,000 of modified adjusted gross income, that formula gives an $11,900 cap.
At $650,000, it reaches the $10,000 floor.
The actual deduction also depends on eligible taxes paid and other limits.
A large payout can therefore reduce the benefit of the higher published cap.
Mortgage itemized deductions do not reduce this income measure to restore the cap.

## Compare San Francisco and Santa Cruz

**The move changes your life and property costs. It does not create a California income tax exemption.**
Both locations use California income tax rules.
California prohibits local personal income taxes, with separate provisions for certain business taxes.
[California Revenue and Taxation Code](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17041.5.).

Even leaving California may leave some stock compensation taxable there because of earlier California work.
[FTB RSU sourcing ruling](https://www.ftb.ca.gov/tax-pros/law/chief-counsel-rulings/2013-02.pdf).

### Compare the actual property and jurisdiction

Proposition 13 generally provides a 1% base property tax, plus applicable bonds and other charges.
A purchase normally creates a new market-value assessment unless an exclusion applies.
The seller's old tax bill is not your future bill.
Supplemental assessments can produce separate bills after purchase.
[BOE property tax overview](https://www.boe.ca.gov/proptaxes/pdf/pub29.pdf), [Santa Cruz supplemental assessment guidance](https://www.assessor.santacruzcountyca.gov/PropertyTaxInformation/NewHomeownersInformation.aspx).

Santa Cruz city also differs from unincorporated Santa Cruz County.
From July 1, 2026, the city's Measure C adds a marginal transfer tax above $1,800,000.
The county base transfer tax still applies.
A Santa Cruz mailing address alone does not establish city jurisdiction.
[City Measure C guidance](https://www.santacruzca.gov/Government/City-Departments/Finance/Licenses-Fees-and-Taxes/Measure-C-Workforce-Housing-Affordability-Act-of-2025), [Measure C text](https://votescount.santacruzcountyca.gov/Portals/16/nov25/Measure%20C%20Text.pdf), [county recording rules](https://www.recorder.santacruzcountyca.gov/Services/DocumentRecording.aspx).

The unincorporated column below covers Santa Cruz County locations outside city limits.

<p class="text-muted sm:hidden">Swipe across the table to compare all three locations.</p>

<div class="overflow-x-auto focus-visible:outline-2 focus-visible:outline-heading [&_table]:min-w-[36rem]" role="region" aria-label="Illustrative transfer taxes" tabindex="0">

<table class="guide-numeric">
  <caption>Illustrative transfer taxes at two sale prices</caption>
  <thead>
    <tr>
      <th scope="col">Price</th>
      <th scope="col">San Francisco</th>
      <th scope="col">Santa Cruz city</th>
      <th scope="col">Unincorporated</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <th scope="row">$2,000,000</th>
      <td>$15,000</td>
      <td>$3,200</td>
      <td>$2,200</td>
    </tr>
    <tr>
      <th scope="row">$2,600,000</th>
      <td>$19,500</td>
      <td>$7,360</td>
      <td>$2,860</td>
    </tr>
  </tbody>
</table>

</div>

**Illustrations assume full-price taxable transfers without exemptions or continuing-lien reductions.**
Santa Cruz city figures combine county and city transfer taxes.
SF uses 0.75% of the full taxable value at these prices.
The purchase contract allocates this cost between buyer and seller.
Tax law can make both liable.
These figures are not automatic buyer savings.
[San Francisco transfer tax law](https://codelibrary.amlegal.com/codes/san_francisco/latest/sf_business/0-0-0-2352).

Ask escrow for the property's full assessment list and transfer-tax allocation.
Obtain insurance terms during property review.
Standard homeowners insurance generally excludes flood and earthquake damage.
[California homeowners insurance guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/res-ins-guide.cfm).

## Know what continues after closing

The price and down payment do not describe the full cost of living in the home.
Before removing purchase protections, build a property-specific list with your lender, insurer, and inspectors.

<table>
  <caption>Ongoing ownership costs to confirm</caption>
  <thead>
    <tr><th scope="col">Cost</th><th scope="col">Check</th></tr>
  </thead>
  <tbody>
    <tr><th scope="row">Mortgage payments</th><td>Loan terms</td></tr>
    <tr><th scope="row">Property taxes</th><td>New assessment</td></tr>
    <tr><th scope="row">Insurance</th><td>Coverage and costs</td></tr>
    <tr><th scope="row">HOA dues</th><td>Budget and assessments</td></tr>
    <tr><th scope="row">Maintenance</th><td>Inspections and estimates</td></tr>
    <tr><th scope="row">Utilities and services</th><td>Property-specific responsibilities</td></tr>
  </tbody>
</table>

- **Mortgage principal and interest.** Use the proposed loan terms. Check whether the rate or payment can change.
- **Property taxes and parcel charges.** Use the expected new assessment and applicable charges, rather than the seller's old bill.
- **Homeowners and additional insurance.** Obtain terms for the actual address, including premiums, deductibles, exclusions, and rebuilding coverage.
- **HOA dues, if applicable.** Review the budget, reserves, meeting records, and any proposed or approved special assessments.
- **Maintenance and repairs.** Use inspection findings and contractor estimates. Separate immediate work from later replacements.
- **Utilities and services.** Check water, energy, waste, internet, and any private road, well, or septic responsibilities.

**Separate these costs from the money paid to acquire the home.**
The down payment, loan fees, title and escrow charges, and other buyer charges belong in the purchase calculation.
Prepaid insurance and initial mortgage escrow deposits can fund costs that also appear in your ongoing plan.
Count their timing correctly instead of treating them as two separate expenses.
[CFPB closing cost and escrow guidance](https://www.consumerfinance.gov/owning-a-home/closing-disclosure/).

A supplemental property tax bill can arrive after closing and sit outside the regular bill.
Supplemental bills go directly to the owner and are generally not paid through mortgage escrow.
Ask your loan servicer whether it handles that bill through escrow or expects you to pay it directly.
Keep funds available until you confirm the amount and payment responsibility.
[Santa Cruz County guidance for new owners](https://www.assessor.santacruzcountyca.gov/PropertyTaxInformation/NewHomeownersInformation.aspx).

For a coastal or hillside home, ask the insurance professional which hazards the proposed coverage excludes.
Flood, earthquake, earth movement, and ordinary maintenance are generally outside standard homeowners coverage.
Ask about separate coverage and remaining gaps for the specific property.
[California insurance coverage guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/03-res/res-ins-guide.cfm).

## Decide how to hold title

The name on the deed deserves attention before closing.
Ask your estate attorney how the home fits your family arrangements, estate documents, and funding source.
Then confirm that ownership structure with your lender and escrow officer.

### A revocable trust has a specific role

A revocable living trust can help manage and distribute property.
It generally remains a grantor trust for income tax purposes, with income attributable to its owner.
Putting a personal home in that trust does not itself erase RSU income tax.
[IRS trust guidance](https://www.irs.gov/instructions/i1041).

### Married buyers: ask about community property

For qualifying community property, both halves can generally receive a new tax basis when one spouse dies.
At least half the property's value must be includible in the deceased spouse's gross estate.
This can affect gain on a later sale and differs from some other ownership arrangements.
The adjustment can increase or decrease basis with the property's value.
[IRS Publication 551](https://www.irs.gov/publications/p551).

Ask your attorney to compare ownership forms and document any separate-property contributions before signing the deed.
An income tax basis adjustment and a California property tax assessment are separate matters.
Confirm each treatment independently.

## If the home also earns income

A personal beach home and a rental investment need different tax plans.
An LLC alone does not make personal costs deductible.
Ordinary rental losses are usually passive, and high earners generally cannot use them to offset RSU wages.
[IRS passive activity rules](https://www.irs.gov/publications/p925).

Some short-stay rentals fall outside the tax definition of a rental activity.
An average customer stay of seven days or less is one such exception.
You still need material participation and must pass other loss limits to offset nonpassive income.
**Material participation** means meeting an IRS test for your involvement in the activity, often based on hours and work performed.
Personal use can restrict deductions further.
[IRS passive activity exceptions](https://www.irs.gov/publications/p925), [vacation home rules](https://www.irs.gov/taxtopics/tc415).

Cost segregation separates eligible shorter-life property from a building for depreciation.
Federal bonus depreciation may accelerate deductions for qualifying assets.
It does not cover the entire home's cost or land, and California does not follow federal bonus depreciation.
Later sales can have additional tax consequences.
[IRS cost segregation guide](https://www.irs.gov/pub/irs-pdf/p5653.pdf), [IRS depreciation guide](https://www.irs.gov/publications/p946), [FTB conformity summary, section 70301](https://www.ftb.ca.gov/about-ftb/data-reports-plans/summary-of-federal-income-tax-changes/index.html).

**Check legal rental use before modeling a deduction.**
The city and unincorporated county have separate permit rules and limits.
Do not assume a seller's permit transfers to you.
Confirm eligibility for the exact parcel before relying on rental income or tax losses.
[City short-term rental rules](https://www.santacruzca.gov/Government/City-Departments/Community-Development/Short-Term-Rentals), [county short-term rental rules](https://cdi.santacruzcountyca.gov/UPC/DiscretionaryPermitsZoning/DiscretionaryPermits/Short-TermRentals.aspx).

## Build your team and prepare your questions

Start with tax advice for your stock proceeds and a lender if you plan to borrow.
Investment and estate advice depend on your finances and ownership plans.
You do not need every professional listed below before our first conversation.
Give each person you choose a defined part of the purchase.

1. **Tax adviser:** Confirm award treatment, basis, estimated payments, sale timing, and the deductions or exclusions that apply.
2. **Financial adviser:** Decide how the home fits your investments, future spending, and exposure to employer stock.
3. **Lender:** Confirm accepted income, funding records, loan terms, and any planned refinance.
4. **Real estate agent:** Narrow the locations, compare properties, and coordinate the offer, inspections, and closing schedule.
5. **Estate attorney and escrow:** Review ownership, any trust, and title before preparing the deed and loan documents.

### If you do not have advisers yet

Start with the [IRS guide to choosing a tax professional](https://www.irs.gov/tax-professionals/choosing-a-tax-professional).
Ask about experience with your type of stock award.
If your finances involve another country, ask whether they can advise on both countries or coordinate with another specialist.
Confirm their fees and availability before your planned stock sale and home offer.

#### Experience and scope

- **Relevant work:** Have you handled this award type, California stock compensation, and home purchases with similar timing?
- **International finances:** Who handles any foreign accounts, property, tax returns, or work history that affects my plan?
- **Scope:** Do you provide planning before the sale, prepare the return, or both?
- **Deliverables:** Can you provide a written payment schedule and explain which decisions need action before my offer?

#### Fees and coordination

- **Fees:** Do you charge hourly, a fixed fee, a share of managed assets, commissions, or a combination?
- **Conflicts:** Do referrals, product sales, or assets kept under your management affect your pay?
- **Coordination:** With my permission, can you work with my lender and attorney on the dates and records they need?

For investment advice, request the firm's relationship summary, called Form CRS, if applicable.
Ask which services and conflicts it describes, and who handles your account.
[SEC interview questions](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/investor-bulletin-questions-ask-when-hiring-investment-professional), [SEC Form CRS explanation](https://www.investor.gov/CRS).

Check credentials through the appropriate official source:

- **Tax preparer:** Use the [IRS directory and qualification guidance](https://www.irs.gov/tax-professionals/choosing-a-tax-professional).
- **CPA:** Check the license and available disciplinary information through the [California Board of Accountancy](https://www.dca.ca.gov/cba/consumers/license-lookup.shtml).
- **Investment professional:** Review registration and disciplinary records through [Investor.gov](https://www.investor.gov/introduction-investing/getting-started/working-investment-professional/check-out-your-investment-professional).
- **Attorney:** Check license status and public discipline through the [State Bar of California](https://apps.calbar.ca.gov/attorney/LicenseeSearch/QuickSearch).

A credential check does not establish experience with your particular stock plan or another country's rules.
Confirm the work, fees, responsible person, and delivery dates in writing before engaging them.

I can introduce you to local lenders and coordinate the home purchase.
Your tax adviser and attorney handle tax and legal advice.
You can start a conversation about the move while you find those specialists.

Bring award agreements, employer trading rules, payroll records, broker statements, and your proposed timing to these discussions.
Share sensitive financial documents directly with the professional who needs them.

### Put the important dates in one plan

- **Company dates:** Award payment, permitted sales, tender deadlines, and acquisition payment dates that apply to you.
- **Tax dates:** Payroll withholding review and federal and California estimated payments.
- **Offer dates:** Deposit, inspections, financing conditions, and closing.
- **Later mortgage:** The lender's deadline and the applicable IRS mortgage date.
- **Proposition 19:** The two-year replacement window and three-year claim filing window, if eligible.

Ask the relevant professional to confirm each date in writing.
This keeps a home purchase from depending on an assumed stock sale or refinance.

If you own early company stock, ask your tax adviser whether qualified small business stock rules apply.
QSBS can exclude eligible stock gain under strict issuance, company, and holding-period tests.
It does not exempt RSU wages, and California does not follow the federal exclusion.
[Section 1202](https://www.law.cornell.edu/uscode/text/26/1202), [FTB conformity summary](https://www.ftb.ca.gov/about-ftb/data-reports-plans/summary-of-federal-income-tax-changes/index.html).

A 1031 exchange applies to qualifying investment or business real estate, not ordinary stock or a personal home.
Buying a personal home in an Opportunity Zone does not turn it into a qualifying fund investment.
[IRS exchange rules](https://www.irs.gov/instructions/i8824), [IRS Opportunity Fund guidance](https://www.irs.gov/credits-deductions/businesses/invest-in-a-qualified-opportunity-fund).

## What happens when you contact me

We start with the life you want here and the parts of the purchase that feel unfamiliar.
Tell me whether you currently rent, your expected timing, and whether this is a primary or second home.
You do not need a property selected or advisers already in place.

Together, we can:

1. Choose areas to explore around your work, family, and daily routine.
2. Identify the next purchase steps and the questions that need a lender or specialist.
3. Arrange local lender introductions if useful, then plan tours when you are ready.
4. Review representation terms before working together on offers and the purchase schedule.

With support from Strock Real Estate, I coordinate the home search and purchase.
Your chosen specialists handle tax, investment, and legal decisions.
For the first message, share your plans and questions; send private financial records through each professional's secure process.

## Sources and scope

This guide uses IRS, California, local government, and lender sources linked beside the relevant claims.
It covers rules checked on October 12, 2026.
Some agency publications cover 2025 returns; separate 2026 guidance supports the year-specific federal figures here.
Your advisers need to confirm current rules and your eligibility before you act.
This is general education, not an individual tax, legal, or lending plan.

## What to Expect

- Find an area that fits your life.
- Shortlist homes worth touring.
- Meet local lenders.
- Understand your offer terms.
- Plan inspections and closing.
- Meet contractors and movers.

## Common questions

### Does this guide cover private-company tender offers?

Yes. A company can arrange an employee stock sale while it stays private. Confirm which shares qualify, how much you can sell, the offer deadline, and when payment arrives. Ask your tax adviser to review the award type and sale terms before committing proceeds to a home.

### Does an acquisition have the same tax treatment as an IPO?

The event name does not determine the tax. An acquisition can exchange shares for cash, replacement shares, or both. Some qualifying stock exchanges defer gain; cash and employee compensation need separate review. Your award terms, basis, holding period, and transaction documents determine the questions for your tax adviser.

### Does buying a home reduce the tax on my RSUs?

The purchase itself does not exempt RSU compensation from income tax. Eligible mortgage interest and other deductions can affect your return. Their value depends on your income, filing status, and other limits.

### Do I pay less RSU tax after moving from San Francisco to Santa Cruz?

Both locations use California income tax rules. Moving between them does not create a personal income tax break. Property taxes and transfer taxes depend on the home, jurisdiction, and applicable exclusions.

### Can I buy with cash and add a mortgage later?

Yes, if you qualify for the loan. Confirm the lender's delayed financing rules before buying. IRS rules can treat a mortgage obtained within 90 days as acquisition debt, subject to limits. A qualifying written application date can apply instead of disbursement. Confirm the dates with your tax adviser.

### Does an IPO mean I can sell my shares that day?

Your award terms, settlement, lockup, and employer trading policy determine when you can sell. Confirm the dates with your employer. A public listing alone does not establish your access to cash.

### Does this apply to employees at companies like Anthropic or OpenAI?

The planning questions apply across companies. Your award terms and employer's rules determine what you receive and when you can sell. Your tax adviser confirms how the payment is taxed. This guide does not assume an IPO or payout date at either company. Confirm your terms before using the money for a home.

## Make Santa Cruz home

Tell me what you want life in Santa Cruz to look like. I guide your home search, purchase, and move. We start with your plans, timing, and questions. I connect you with local professionals and help you settle in after closing.

---
# Gisele Sasso — Santa Cruz Real Estate Agent

> Santa Cruz real estate agent helping families moving to Santa Cruz find the right home. On-the-ground knowledge, personal attention, and honest advice.

- **Phone:** 831-332-5624
- **Email:** gisele@giselesasso.com
- **License:** CA DRE# 02228694
- **Brokerage:** Strock Real Estate (CA DRE# 01337838)
- **Office:** 251-A Center Ave, Aptos, CA 95003
- **Website:** https://giselesasso.com