Restricted Stock Grant

[dfreney2013]

When stock shares vested taxes were paid on restricted stock grant from shares sold. What is the cost basis of the remaining shares?

[DDollar]

The cost basis is the fair market value of the shares at the time they vested.  That is also the amount that was included on your W-2.For instance, if you received 100 shares with a value of $50 per share, you would have had $5,000 of income reported on your W-2.  If 25 shares were sold to pay tax, then your remaining shares would still have a value of $50 each, or a total cost basis of $3,750.

[dfreney2013]

Thank you! This was very helpful. Now to research the same stock conversion due to acquisition.

[DDollar]

You're welcome.  I'm glad you found it Helpful!