Select that you purchased them. Essentially you did purchase them on the vested date. If the shares sold were used to pay federal tax (should be included in your W-2), follow the instructions below for cost basis. If you sold shares yourself later, use the actual amount paid and the amount included in your W-2. You are required to know cost basis and stocks are considered first in-first out when calculating cost basis unless you chose to sell specified shares (uncommon).
- The buy and sell will be basically the same dollar amounts due to the sale occurring when you were awarded the shares. (Income reported on your W-2, as well as federal withholding paid for you).
- The income reported in you W-2 is the amount that becomes your cost basis (and any money you might have paid as a discounted amount for the shares).
- Example Scenario: 10 shares sold will have a $100 (assumes $10 per share) cost basis for you and same sales price (amount awarded plus any discount cost to you, if any) the balance, $200, will be the cost basis of the ones you still hold (assumes a total of 30 shares)
Restricted Stock Units (RSUs) is an award granted and given to high ranking employees. Rights are restricted until shares are vested. Vesting occurs after the passage of time or performance criteria are met. Shares are forfeited if the conditions are not met.
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