DavidD66
Expert Alumni

Get your taxes done using TurboTax

RSUs are pretty straight forward; therefore, I recommend you enter your transactions without indicating you are reporting the sale of company stock.  Indicating that is company stock has no impact on what's reported to the IRS.  It only affects what screens and questions you get in the TurboTax interview.  When RSUs vest (the stock is delivered) the entire amount is ordinary income.  Your employer must collect payroll taxes, or sell shares to pay it.  Since you are taxed on the entire amount, you basis is the amount that is added to your W-2 which you are taxed on.  If you retain the stock, any gains on the sale will be short term if you hold the stock one year or less, and long term if you hold it more than one year.

 

Your cost basis is the total value on the date the RSUs vested.  This is also the amount that it is added to your income and included in Box 1 of your W-2.  To get your cost basis per share, divide the total value upon vesting (the amount added to your income) by the total number of shares represented by the RSUs.

 

You will have two transactions.  The cost basis (per share) and acquisition date will be the same for both transactions, and they will both be short term.  The proceeds and sales date will be whatever is reported on the 1099-B.

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