Need to include 'sell to cover' shares used for tax withholding and listed on 1099-B as part of vested RSUs as sold shares on Form 8948? @TomYoung

Do I need to list the shares which were sold ('sell-to-cover') for tax withholding purposes as part of vested RSUs and which are listed on a 1099-B on Form 8949?

These sell-to-cover shares were sold on the vesting date, so should I use the fair market value/cost basis based on the vesting date or '0' as included on the 1099-B?

Thanks for your help. BR. M

755

Level 13

Mar 7, 2021 6:42:17 AM

When you sell a stock you must tell the IRS the correct basis in order to get the correct gain or loss on the sale. Stocks acquired via an RSU simply do not have a basis of $0. The correct per share basis is the same as the per share "fair market value" used by the employer to calculate the compensation created by the grant vesting.

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Need to include 'sell to cover' shares used for tax withholding and listed on 1099-B as part of vested RSUs as sold shares on Form 8948? @TomYoung