Yes. Although 1000 shares were granted, they were not all sold. The only information that should be entered here is the actual number of shares that were sold. The value on the vesting date of those same shares will be your cost basis (check your W-2 and divide that total by the number of shares received on the vesting date). The amount reported as taxable income on your W-2 becomes your cost basis for all vested shares.
Summary:
- When you receive an RSU award, you don't actually own the stock until it vests. Accordingly, there is nothing to report at the time of the award.
- Once the stock has vested, the fair market value of the stock gets reported as ordinary income, usually in box 1 of your W-2. In some companies, employees can earn dividends from unvested RSUs — these are also reported in box 1 of their W-2 forms.
- After vesting, you own the stock outright. Should you later sell those shares, you'll get a 1099-B which will report the gain or loss from the sale.
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