Get your taxes done using TurboTax

Hi Gloriah,

Thanks for the reply. Neither of the links seem to be the answer to my problem. Maybe I can be more specific with an example sale and what Tubo Tax is doing:

In June of last year, I had 3 stocks vest, 2 were sold to cover taxes, I received 1.  Let's say the stocks value was $500 at the time of vest.

When I input this into the Turbo Tax software it goes like this:

1. Input the sale from the 1099-B (2 shares sold, $990 profit (2x$500 minus $10 commission on the sale, $1000 Cost Basis) net gain $-10
2. Turbo tax asks if the stock was received as a part of an ESP, yes, select RSU
3. It asks questions about the RSU vest date and how many were sold (info comes from 1099-B)
4. It asks if this was multiple or a single lot
5. Now it asks you to look at the bank transaction for some info about the vest:
   1. Total shares Vested: 3
   2. Shares sold (withheld) to cover taxes: 2
   3. Date vested
   4. Price Per Share on Vest Date: $500
   5. Price Paid for shares: $0.00
   6. Commission / fees: $10
6. Now it shows the RSU Sale Results
   1. Proceeds, less expenses: $990
   2. Price paid: $0
   3. Compensation income: $1500 (3x$500)
   4. Cost Basis: $500  <--- this is the problem. It should be $1000 as there was two stocks sold, not 1.
   5. Short Term Gain: $490 ($500 - 10, the missing cost basis less commission)

So now when you look at all of your sales for the year, the short term gain is wrong because the cost basis is wrong.

Hope this helps explain the issue. It's entirely possible I'm inputting something wrong, but this appears to be a bug in how TT is computing the STG and Cost Basis for the RSU sell to cover taxes sale.