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Investors & landlords
" if I go through the "Guide me step-by-step" option (in other questions I have read that you don't recommend this; however, it seems to be only the way to specify that a transaction involved RSUs)"
That's because there is absolutely NO need to do so, if you know your basis for the shares sold, and you should, at this point. There is NO, NONE, NADA reporting to the IRS along the lines of "these shares were acquired via an RSU". ALL trades, no matter how the stock was acquired, report themselves in the EXACT SAME fashion on Form 8949:
A description of what was sold, e.g., "Company XYZ stock"
A date of sale
Proceeds from the sale
A date of acquisition
Cost basis
As you can see there's nothing there - or anywhere else in your income tax return - that tells the IRS HOW you acquired the stock.
Sales of stock acquired via an RSU typically have a column 1g adjustment - because the broker "reports" $0 basis - but every single sale of stock acquired via an employer stock incentive program ALSO has that adjustment, as do many, many trades where you simply bought the stock from a broker, or were gifted the stock, or inherited the stock.
I advise people not to use the RSU step by step for 2 reasons: 1) it's not necessary if you know your basis and 2) people are frequently confused by the interview. Case in point.
I've told you how to determine your per share basis and I've told you how to correct the basis if the broker reports $0 to the IRS and I've told you it doesn't really matter, mechanically, how the trade shows up in your income tax return as long as the gain or loss is (reasonably) correct. If you've read other answers I've provided you also know that the typical same day sale - which this is - typically reports a small loss. Not EVERY SINGLE TIME of course - sometimes the per share FMV used by the employer is slightly different than your per share selling price - but any answer that's within spitting distance of $0 gain or loss is "close enough".
That's because there is absolutely NO need to do so, if you know your basis for the shares sold, and you should, at this point. There is NO, NONE, NADA reporting to the IRS along the lines of "these shares were acquired via an RSU". ALL trades, no matter how the stock was acquired, report themselves in the EXACT SAME fashion on Form 8949:
A description of what was sold, e.g., "Company XYZ stock"
A date of sale
Proceeds from the sale
A date of acquisition
Cost basis
As you can see there's nothing there - or anywhere else in your income tax return - that tells the IRS HOW you acquired the stock.
Sales of stock acquired via an RSU typically have a column 1g adjustment - because the broker "reports" $0 basis - but every single sale of stock acquired via an employer stock incentive program ALSO has that adjustment, as do many, many trades where you simply bought the stock from a broker, or were gifted the stock, or inherited the stock.
I advise people not to use the RSU step by step for 2 reasons: 1) it's not necessary if you know your basis and 2) people are frequently confused by the interview. Case in point.
I've told you how to determine your per share basis and I've told you how to correct the basis if the broker reports $0 to the IRS and I've told you it doesn't really matter, mechanically, how the trade shows up in your income tax return as long as the gain or loss is (reasonably) correct. If you've read other answers I've provided you also know that the typical same day sale - which this is - typically reports a small loss. Not EVERY SINGLE TIME of course - sometimes the per share FMV used by the employer is slightly different than your per share selling price - but any answer that's within spitting distance of $0 gain or loss is "close enough".
‎June 6, 2019
2:13 AM