I had performance share units that vested immediately upon closing of a merger / acquisition in December. 2019 The consideration was cash, plus shares in the acquirer. I did not sell the acquirer's shares received until January 2020. My questions are:
1) Federal Taxable Income - it appears that my W-2 includes the consideration as part of taxable income (Box 1) and that the value of the shares "sold to cover" was included in the Federal Income Tax Withheld section (Box 2) of the W-2. My understanding is that no further adjustment is needed, but I wanted to confirm that I wasn't missing something relative to the "cover-to-sell" portion of the award.
2) I received a 1099-B from Etrade, which shows the value of the cash consideration as Non-covered with a Cost Basis of $0. Etrade also provided a "Stock Plan Transactions Supplement", which shows the basis as the net value of the shares after the sell-to-cover was made. I think that the tax basis of the cash is simply the value of the cash, rather than $0, or the total (net after withholding) value of the cash + stock consideration. Amy I thinking about that right? If so, I've seen mention of entering the cost basis per the 1099-B, then adding additional information via TurboTax Premium - is that the right approach?
3) My understanding is that the sale in January of the acquirer's stock received is a 2021 event as far as the gain / loss goes, but let me know if that is incorrect.
Thank you for the help. I know that there are similar questions on this topic, but each one seems to have its own unique issues and quirks.
If you need specifics, I'm happy to provide them.
