Thank you so much ThomasM125 for your quick response. Just one clarification,
Let's say (Opt 1) I sold these 22 shares at a lost for $1100 and use 2,256 as my basis, that will only allow me to take a net loss of $1,156 in my return, for the $1,743 in taxes I paid (when the units were vested).
But (Opt 2) if I use 4000 as my basis, that will allow me to take a net loss of 2,900 (1100-4000) in my return for the $1,743 taxes I paid in past.
Assuming 43% tax rate - Net ultimate benefit/cash I received from RSU is $1100. Assuming 43% tax rate, Net tax I should have paid on this Net $1100 cash received, should be $473 ($1100*43%). This is how 2 scenarios impact the current year return -
Opt 1 - Tax saving from Loss > 1,156@43% = -497, Tax paid in past 1743, Net tax paid = 1246
Opt 2 - Tax saving from Loss > 2,900@43% = -1247, Tax paid in past 1743, Net tax paid = $496
