@ThomasM125 Why is ESPP reported under "covered securities" and RSUs reported under "non covered securities" in the 1099B?
Why does the 1099B not show the correct adjusted cost basis, and you need the supplemental document? Is it a timing thing on how things are reported so its not captured correctly on the 1099B?
On the supplement document, I notice this:
For RSU, the adjusted cost basis (ordinary income) is usually close in dollar amount to the total proceeds. The cost basis is usually 0 since the stock as given to the employee. Your explanation for ESPP and RSU adjusted cost basis makes sense. It's because the proceeds are already added to the W2 as income so to avoid double counting/taxing, the cost basis usually needs to be adjusted to compensate for the income reported on your W-2 form. I just noticed for the RSUs, the adjusted cost basis (ordinary income) is close to in dollar amount to the total proceeds. But for the ESPP, the adjusted cost basis (ordinary income) is a small percentage to the amount of the total proceeds. Trying to understand the logic of how this person got compensated.
