Business & farm

NO, they weren't a gift.  They were compensation earned by the "sweat of your brow", just like a regular cash paycheck.  Instead of cash you got valuable stock, stock that you could immediately sell for cash.  And the value of the stocks you were awarded was included on your W-2.  That is:

COMPENSATION = (GROSS number of shares awarded) x (per share "fair market value" used by broker to calculate the W-2 compensation reported).  Accordingly, your per share basis is the same as that per share "fair market value".

Tell TurboTax you "purchased" the stock - you really did, agreeing to trade your time and effort on behalf of the employer for employer stock - and your purchase date was the date of vesting.  Your per share "purchase price" is the same as the per share "fair market value."

Tom Young

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