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zikoor
New Member

I have been given RSUs by my company, and sold some of them.

When RSUs vested, tax was paid at vesting time (ex. 100 vest and I get 70 of them because the other 30 pays taxes).  My cost basis in etrade is showing 0 for the stocks sold which makes this entire sale taxable again
1 Reply
MichaelDC
New Member

I have been given RSUs by my company, and sold some of them.

1.       The profit from the sale of your employee stock purchases or stock options has been reported on your W-2.

2.       In addition to that, you received a 1099-B reporting the sale.

You clearly didn't receive a profit of the total amount reported in the Proceeds Box 1d 1099-B. 

The basis (cost of your investment) is seemingly "0".

If that were the case, "yes" you would be taxed twice.

To correct this situation, you report the basis (in box 1e and on TurboTax) to be the compensation amount that was added to your W-2. Most of the time this is a "cashless transaction" and no additional shares were sold that weren't already accounted for in your W-2.

Only, if the 1099-B reports an incorrect basis:

1.       Enter the 1099 as is then

2.       Click  Add More Details or Edit

3.       Select the option  "I'll enter additional info on my own" (or just click Continue if the "on my own" button isn't present)

4.       Scroll to "Corrected cost basis"

5.       Enter the correct basis (in most cases the same as your "Proceeds")

6.       Click Done

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.

 

(See the attached screenshots below. Click to enlarge.)

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