topic Etrade sell to cover taxes on stocks I get from my employer. Example: vest 67 sell 27 to cover tax. In 1099-B, they report only the 27 sold. Do I pay tax for those 27? in Investors & landlords https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax-in/01/1649593#M53465 Sun, 28 Jun 2020 22:25:31 GMT pablonapolitano 2020-06-28T22:25:31Z Etrade sell to cover taxes on stocks I get from my employer. Example: vest 67 sell 27 to cover tax. In 1099-B, they report only the 27 sold. Do I pay tax for those 27? https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax-in/01/1649593#M53465 Sun, 28 Jun 2020 22:25:31 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax-in/01/1649593#M53465 pablonapolitano 2020-06-28T22:25:31Z Re: Etrade sell to cover taxes on stocks I get from my employer. Example: vest 67 sell 27 to cover tax. In 1099-B, they report only the 27 sold. Do I pay tax for those 27? https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax/01/1649744#M53472 <P>If this was a "cashless" transaction then the purchase would be on your W-2&nbsp; and the sale is on the 1099-B from the broker.&nbsp; If it is done correctly, the broker will show the basis as the amount you have already been taxed on the W-2 form so the sale will show a loss of the cost of the broker's fee ... you MUST enter that 1099-B info on the return ... failure to do so will result in a nasty letter from the IRS later.&nbsp;</P> Mon, 29 Jun 2020 00:48:20 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax/01/1649744#M53472 Critter 2020-06-29T00:48:20Z Re: Etrade sell to cover taxes on stocks I get from my employer. Example: vest 67 sell 27 to cover tax. In 1099-B, they report only the 27 sold. Do I pay tax for those 27? https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax/01/1650157#M53498 <P>The direct answer to your direct question of "<SPAN class="lia-link-navigation lia-link-disabled">Do I pay tax for (the sale of) those 27?" is almost certainly "No."&nbsp; </SPAN></P><P>&nbsp;</P><P><SPAN class="lia-link-navigation lia-link-disabled">Your <U>per share</U> basis of those 27 shares is the same as the <U>per share</U> fair market value used by your employer to calculate the compensation created by the vesting of the 67 shares, and you've already paid the tax on that compensation.&nbsp; So for a same day sale you expect that your per share selling price and that per share fair market value number would be more or less the same, creating a small loss due to selling commissions and fees.&nbsp;&nbsp; (Occasionally, you receive a higher per share selling price than the per share figure used by your employer, so a small taxable profit can occur.&nbsp; That's why I qualified by answer with "almost certainly.")<BR /></SPAN></P><P>&nbsp;</P><P><SPAN class="lia-link-navigation lia-link-disabled">The issue you face here is that the 1099-B almost certainly has the <U>wrong basis</U>, though the broker should have disclosed the correct basis to use on some "supplemental information" that came with the 1099-B.&nbsp; Be sure you use the correct basis when you report the sale.</SPAN></P> Mon, 29 Jun 2020 14:04:27 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax/01/1650157#M53498 TomYoung 2020-06-29T14:04:27Z
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topic Etrade sell to cover taxes on stocks I get from my employer. Example: vest 67 sell 27 to cover tax. In 1099-B, they report only the 27 sold. Do I pay tax for those 27? in Investors & landlords
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https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax-in/01/1649593#M53465
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Etrade sell to cover taxes on stocks I get from my employer. Example: vest 67 sell 27 to cover tax. In 1099-B, they report only the 27 sold. Do I pay tax for those 27?
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https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax-in/01/1649593#M53465
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Re: Etrade sell to cover taxes on stocks I get from my employer. Example: vest 67 sell 27 to cover tax. In 1099-B, they report only the 27 sold. Do I pay tax for those 27?
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https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax/01/1649744#M53472
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<P>If this was a "cashless" transaction then the purchase would be on your W-2&nbsp; and the sale is on the 1099-B from the broker.&nbsp; If it is done correctly, the broker will show the basis as the amount you have already been taxed on the W-2 form so the sale will show a loss of the cost of the broker's fee ... you MUST enter that 1099-B info on the return ... failure to do so will result in a nasty letter from the IRS later.&nbsp;</P>
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<dc:date>2020-06-29T00:48:20Z</dc:date>
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Re: Etrade sell to cover taxes on stocks I get from my employer. Example: vest 67 sell 27 to cover tax. In 1099-B, they report only the 27 sold. Do I pay tax for those 27?
</title>
<link>
https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/re-etrade-sell-to-cover-taxes-on-stocks-i-get-from-my-employer-example-vest-67-sell-27-to-cover-tax/01/1650157#M53498
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<P>The direct answer to your direct question of "<SPAN class="lia-link-navigation lia-link-disabled">Do I pay tax for (the sale of) those 27?" is almost certainly "No."&nbsp; </SPAN></P><P>&nbsp;</P><P><SPAN class="lia-link-navigation lia-link-disabled">Your <U>per share</U> basis of those 27 shares is the same as the <U>per share</U> fair market value used by your employer to calculate the compensation created by the vesting of the 67 shares, and you've already paid the tax on that compensation.&nbsp; So for a same day sale you expect that your per share selling price and that per share fair market value number would be more or less the same, creating a small loss due to selling commissions and fees.&nbsp;&nbsp; (Occasionally, you receive a higher per share selling price than the per share figure used by your employer, so a small taxable profit can occur.&nbsp; That's why I qualified by answer with "almost certainly.")<BR /></SPAN></P><P>&nbsp;</P><P><SPAN class="lia-link-navigation lia-link-disabled">The issue you face here is that the 1099-B almost certainly has the <U>wrong basis</U>, though the broker should have disclosed the correct basis to use on some "supplemental information" that came with the 1099-B.&nbsp; Be sure you use the correct basis when you report the sale.</SPAN></P>
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