I have a stock sale reported on 1099-B with a combination of share lots from ESPP and RSU. I can enter ESPP or RSU lots separately, but how to enter a combination sale?

[loren-mcconnell]

I have a stock sale reported on a 1099-B that included multiple lots shares some from ESPP and some from RSUs.   I don't have a problem entering the info for either type separately.   But TurboTax seems to assume that a sale is entirely of one type.  

After I have entered all the lots of ESPP shares, I have a number of shares remaining in the sale -- those are the RSUs.  But I can't find a way to enter the remaining lots as RSUs.   The form only allows me to enter more ESPP lots.

I need to enter a combination of RSU and ESPP in the same sale.   How do I do that?   

[loren-mcconnell]

It seems that I need to split this sale and enter it in two parts so that I can deal with the RSU and ESPP parts independently.  But I can't add another sale to the imported 1099-B.   If I remove the imported form, I can add another sale for the RSUs, and apportion the transaction details between the two sales.  Then update the 1099 worksheet in form view to add the institution info back in.   Am I on the right track here?

[loren-mcconnell]

Tom Young is right -- this is just a case where the "guide me" interview isn't sophisticated enough.  I'm basically following the last part of his answer.  In the end, I found that I could enter the form view for the imported 1099-B worksheet and adjust one of my transactions so that it contained only the info from the ESPP sale lots.  I then added another transaction for the RSU sale lots, so that all are accounted for. Completing the Cap gain worksheet and employee stock worksheet for each transaction produces the correct cost-basis.   

[TomYoung · Accepted solution]

In the simplest case where

1. you absolutely DO KNOW the proper basis to report for ALL the stock ,(it's not there on the 1099-B),
2.  any compensation created by the SALE of stock acquired via the ESPP is on your W-2,
   
3. compensation created by the EXERCISE of the RSU is on your W-2, and
4. the sale is all one holding period

then there's absolutely no need to work through the employer stock "guide me" interview.  You can simply report the sale of the stock as plain-vanilla stock, stock that's no different then stock you bought through your broker.  In that case you enter the 1099-B as it reads on the default 1099-B entry form, (put the word "various" in the date acquired box), but then click on the "I'll enter additional info on my own" blue button.  On the next page enter the correct basis in the "Corrected cost basis" box.  The correct basis is (number of shares sold) x (correct per share basis, which includes the compensation per share)

TurboTax will report the sale on Form 8949 "as reported by the broker" but will put an adjustment figure into column (g) of the Form, a code "B" into column (f) of the Form, and the correct amount of gain or loss which includes the adjustment.

If not all the elements of that list above are true, then you need to break the sale into component parts and report that one sale as several different sales, and that's absolutely fine from an income tax reporting standpoint.  You could even report the various pieces of the trade using different methods, i.e., some parts simply using the default 1099-B entry form and correcting the basis as described above, some parts using one or the other of the employer stock incentive "Guide me" interviews.  As long as you end up reporting the ENTIRE trade everything will be fine.

Tom Young