Hello! I need advice for this particular situation.
BACKGROUND
My employer went public in Feb 2021, and I received stock awards, but before they went public, in June 2020, I was awarded a lot of "Class B Units" under an incentive plan that was established in 2020 – before the IPO. Additionally, I signed and filed the 83(b) election upon receiving the Class B Unit award. The base price and FMV of the Class B Units was $0. The Closing Date is listed as June 19, 2020 and the Vesting Reference Date is January 29, 2020.
Later, after the Feb 2021 IPO, the Class B Units were converted to restricted shares of Class A common stock. Vesting schedule is time based, and upon receipt of the stock, about 12% of my shares were immediately vested (I'm assuming this is because I had been holding the Class B Units for a some time, and a portion then vested?).
However, I couldn't sell any vested shares right after the IPO because there was a customary lockup period of 180 days. Fast-forward 6 months – we're in August 2021 – the lockup period expired, and I sold some shares.
The 83(b) must have worked because I didn't see the vested shares on my W-2 as income, my W-2 income is the same as my base salary.
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WHERE I NEED HELP 🙂
Now I'm entering the details of the sales in TurboTax, from my 1099-B. The form indicates "SHORT-TERM TRANSACTIONS FOR WHICH BASIS IS AVAILABLE BUT NOT REPORTED TO THE IRS - Box B checked". The Cost Basis is listed as $0.
My understanding is that I will just be paying Capital Gains tax on the sales thanks to the 83(b). But wouldn't these be Long Term instead of Short Term, because I had been holding the Class B Units for 6 months, and then the stock for another 6 months?
I have three separate sales, and the Date acquired on the 1099-B is stated as August 10, 2021 – which coincides with the lockup period expiring, but I was holding the (Class B) shares since June 2020, and the (Class A) stock since Feb 2021.
So does the Date Acquired field need adjusting? In TurboTax should I adjust sale category from Box B (Short term noncovered) to Box E (Long term noncovered)?
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MY ULTIMATE QUESTION
Should I make any changes/adjustments to what's on the form 1099-B, or should I enter it exactly as the form indicates?
