Wash sale

[kcmathew]

My company granted me RSUs on October 1,2024 and I sold company stock (at a loss) on October 2, 2024 (from RSUs granted 3 years ago on October 2021). Is this a wash sale? How do I book the capital losses generated from my sale of stock?

[TomD8]

It's not a wash sale because a grant of RSU's does not constitute a purchase of the stock.  You do not actually own the stock until the RSU vests.

To "book" the losses, you simply enter into TurboTax the 1099-G that you will receive for the stock sale.

[kcmathew]

Thanks Tom!

Now that you explain it I checked and the  RSUs vested on Oct 1 and I sold stock (from RSU Vesting 3 years ago) on Oct 2. Then that is a wash sale right? What are my options to book capital losses?

[TomD8]

Since you sold the stock at a loss and then bought it back within 30 days of the sale, it is a wash sale.  If the same brokerage account was involved in both transactions, the wash sale will be reported in Box 1g of your 1099-B.  

https://www.irs.gov/pub/irs-pdf/f1099b.pdf

[Mike9241]

The wash sale would only apply to the number of shares sold on 10/2/24 that equal the number of shares vesting on 10/1//24. So if you sold 500 shares at a loss and the 10/24 vesting was on 400 shares only 400 shares sold would be subject to the wash sale rule. If the 10/1/24 vested 600 shares and you sold 400 shares, all the shares sold would be subject to the wash sale rule. 

if you want to realize the loss on the 10/2 sale you would have to sell shares that cause the wash sale.