Correct amount of basis means adjusting the wrong cost reported on your broker statement to the amount you paid for this investment. In the case of Restricted Stock Units that were reported in Form W-2, the stock amount included in Box 1 has been taxed. That amount should be entered as your basis.
For example,
- Included in Box 1 of Form W-2 was 8,000 for the Restricted Stock Units when they vested, and were therefore taxed.
- These stocks were then sold.
- The broker reported a stock sale with proceeds of $10,000 and cost basis of $0.
- When filing the tax return and reporting the stock sale, the cost should be adjusted to $8,000.
- If the stocks were sold on the same day they vest, there is usually a small capital loss due to the sales fee.
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