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Investors & landlords
You have to adjust the basis to include previously taxed income. You do want them all reported as RSU. The 1099-B should list each transaction. Regardless of one or 100 transactions, the basis must be corrected to include wage income and any sales expenses. You can enter each transaction with the correct information. The STC should be a transaction on its own and can be entered separately.
The IRS puts this in the employee's hands to track their own basis. I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s. This will protect you down the road as proof of your basis in your various investments. As you go through life, rollovers, RSU basis and sales, and more will be captured for you.
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