RobertB4444
Expert Alumni

Get your taxes done using TurboTax

What was taxed as income when vested was the cost of the stock to you.  Hopefully you saved all that documentation.  What you 'paid' for the stock is your basis in it.  

 

When you sell the stock your basis is subtracted from the sale price.  

 

If you have a negative number you have a loss which can be used to reduce your taxable income.  

 

If you have a positive number you have a gain.  The gain is either regular income (if it is a year or less since you vested) or long term capital gains income (if it is more than a year since you vested).  Either way you are taxed on that gain or profit from the sale.  

 

You aren't being taxed on the same thing twice.

 

@sslind 

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