I assume your statement "If I exercise NUA on my company stock..." means that you'll withdraw stock from an ESOP or 401(k), stock with NUA.
"1) If I sell a portion of the shares, I will receive a 1099-B for those shares, I will report the gains on stock sales; correct"
If that's a question as opposed to a statement, then "correct".
"2) On my 1099-R the Gross Distribution nad NUA is reporting the total
for all of those shares; my question is if the capital gains must be
paid on the shares that are transferred now or when they are sold at a
later date"
The NUA and and appreciation or depreciation from the time of the distribution - special rules apply - is recognized at the time of sale, not at the time of transfer.
Tom Young
