Upon vesting of my RSA (500 shares @ 21.60), I traded shares (160 shares @ 21.60) to pay for my taxes. As such, now I hold less share (340 shares sold @ 21.20). How will I calculate my cost basis.
Your cost basis for the sale of the remaining 340 shares will be the Fair Market Value (FMV) of the shares at the time of vesting, assuming that you sold the appropriate number of shares at vesting to cover the Federal and State taxes you owed on all 500 shares. Therefore the only taxes you will pay will be capital gains on the difference in Fair Market Value of the shares at time of vesting and what you sold the 340 shares for. In your case it looks like you sold those shares at the same FMV as when you paid taxes on the whole amount, so there is no difference in your cost basis and you would owe no capital gains tax (and you have already paid your taxes on the 500 RSA shares).
Thanks. So basically my cost basis will be 340 shares sold @ FMV at the time of vesting.
That is correct, and since there is no increase in your cost basis, there will be no capital gains
It will reported on Form 8949. Turbo Tax Premier will ask you during income section that if you had any sales of any kind of investment and select yes and follow.
In this case, the FMV income is reported on the W2 as well right? Won't that be taxed again though he sold some RSUs to cover the tax already?
Total shares vested will be taxed and shown on w2 based on the share price at the day of vesting. Any shares left (after what was cover for taxes) will be taxed again when sold based on the difference between cost basis (which is the share price when the stock was vested minus sell price).
so the amount from the shares sold to cover is included in the tax withheld on w2? I am not sure where it is mentioned that some amount (from shares sold to cover the taxes on vest) has been withheld already.
How do I confirm the W2 contains the tax from the sale of the restricted stock? I don't see it anywhere on any pay stub. In fact, the pay stub says the restricted stock away is not factored into the gross pay. The W2 does seem to have the total sale factored into gross pay, but I'd just like to confirm the taxes are also included.