My question is regarding “restricted stock” (RSAs) sales:
- My W-2 lists the FMV (fair market value) of the RSAs when they were released to me in “box 14”
- RSAs were withheld by my company to pay the taxes on these shares which is included on my W2, and the net shares is all I see in my brokerage
- The 1099-B lists proceeds from the stock I sold
What I don’t understand is that there is a supplement statement from my broker. The cost basis is listed as 0. Then there are two columns for “adjustment income” and “adjusted cost basis” which are equal.
So, for example, this is similar to what I see:
W-2 box #14 = 1000
1099-B proceeds = 2000
1099-B cost basis = 0
“supplement statement” proceeds = 2000 (same as 1099-B proceeds)
“supplement statement” adjusted amount = 2100
“supplement statement” cost basis = 2100
“supplement statement” loss = (100)
It seems like I have only paid taxes on the fmv when I received the shares. How do I reconcile that with the real sale value when I sold the shares? Is that where the “adjustment income” is used?
thx for your help!
