All my previous employer’s RSUs were cash out merger.The 1099-B didn’t report the basis because I got those RSUs over than 10 years,looking back my previous W-2s found those RSUs were included in my W-2s wages in each vested year.Were those incomes the RSUs basis?
All the RSUs were cash out in 2018,could I sum of all the numbers of W-2s RSUs incomes reporting as the total basis?because I really cannot figure out what were their dates and prices accured.
You'll need to sign in or create an account to connect with an expert.
Yes, that income on your-2 is the same as the basis of your RSUs.
Yes, you can sum up all the W-2s' incomes as the total basis. The way how RSU's work is you should only pay taxes once, which is the amount included in box 1 on your W-2. However, if you receive a Form 1099-B, you need to report so to match IRS' records. Your per share basis should be the same as the per share FMV selected the employer. To avoid double taxation, you will enter the same amount in cost basis and the sale proceeds so it will create a net zero.
Yes, that income on your-2 is the same as the basis of your RSUs.
Yes, you can sum up all the W-2s' incomes as the total basis. The way how RSU's work is you should only pay taxes once, which is the amount included in box 1 on your W-2. However, if you receive a Form 1099-B, you need to report so to match IRS' records. Your per share basis should be the same as the per share FMV selected the employer. To avoid double taxation, you will enter the same amount in cost basis and the sale proceeds so it will create a net zero.
I'm going to disagree with TurboTaxlina, MST, EA that adding up the income created by the vesting is the correct basis for your sale of the employer stock.
There's only one way that this would work out correctly and that would be the case if you never sold a share of that stock, not "for taxes" or otherwise and still owned all the shares contained in those grants. Since the vesting creates compensation and since compensation requires "withholding" the most common was of getting the cash "for taxes" is to sell some of the stock simultaneously with the vesting - a "same day" sale. I'm pretty certain that's how the cash for taxes was raised in your case by your reference to the 1099-B that did report basis but that basis didn't match the income reported. If an RSA vests for 100 shares but you only end up with 70 shares because 30 shares were sold or withheld for taxes, then the W-2 figure will be larger than the 1099-B figure as the former is based on 100 shares and the latter is based on 70 shares.
For each vesting your per share basis for the stock receive is the same as the per share "fair market value" used by the employer to calculate the compensation created by the vesting. So yes, your basis IS depended on the amount included in Box 1 for the vesting, but unless you paid your taxes by reaching into your own pocket and passing the cash over to the employer it's not the SAME AS that Box 1 income amount.
Tom Young
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
lac528
Level 2
thehartfamily484
New Member
rebecc3
New Member
ericfisler-gmail
New Member
SGL2023
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.