Inputting sales of company RSUs seem very straightforward in TurboTax. However, inputting sales of RSUs that issued special stock dividend (and sales of that dividend) is not straightforward at all. I assume this is because this is a very rare circumstance. However, this is what happened when Dell Technologies spun off VMware and gave out a special dividend of VMware shares. Now I need guidance how this should get inputted into TurboTax.
Let me review the situation (making up share & price numbers for simplicity):
2020 - Vested 100 shares of DELL at $100/share. Sold-to-cover (taxes) 20 shares at $100/share. 80 shares remaining ($8000 total value).
2021 - Dell spins off VMware and gives out special VMW dividend at 0.5 ratio. Therefore 40 VMW shares received at $100/share. DELL shares automatically adjust to $50/share due to dividend. Still have 80 shares of DELL. Total value of DELL and VMW shares combined still $8000 total value.
2022 - Sell all 40 VMW shares at $110/share and all 80 Dell shares at $55/share. Total amount is $8800. Therefore long term gains is $800 at point of vesting & selling to cover.
To me this is straightforward. I get taxed on the $800.
But now the question becomes... How do I get this into TurboTax? The software forms asks for the DELL price, shares, and amount sold at time of vesting & selling to cover. Except things have adjusted since the dividend. It also asks the same for VMW -- which I never actually received as a vesting, but rather as a post-vesting special dividend.
