Restricted Stock Units

[gll]

Hello.  My husband received RSUs and for each group that vested there was a sale to cover taxes.  The 1099B only reported proceeds, no cost basis.  So using the transaction detail sheets I put in the cost basis as the sales price x number of shares, so that my loss would be equal to the commissions.  When I looked at the Capital Gain forms and worksheets I noticed that for 3 of my 4 sales, TT had changed my cost basis.  The differences are insignificant - $7 on one and $5 on another and $2 on the third.  But my question is, why does TT do this?  And should I care, or just leave in their numbers and move on.

Thank you.

[GeorgeM777]

TurboTax will adjust basis based on the numbers entered into the application.   The numbers need to be correct so you are right to post your question.  

Generally, when a company sells shares to cover, there is neither a gain or loss on the sale because the vesting and sell to cover occur at the same time.  You are correct to make a cost basis adjustment.  The cost basis should be the value of the shares on the day they vested. Your approach to calculating basis for the sell to cover shares seems reasonable because you multiplied the number of shares sold times the price per share.  

Does your 1099-B reflect if there were any commissions/fees paid when the shares were sold.  If there were commissions/fees paid in connection with the sell to cover, add those commissions/fees to your basis.  

@gll

[gll]

Thank you. The difference between the TT basis and my basis calculation was so tiny, that my conclusion is that perhaps they valued the sale using the closing price of the stock for that day, whereas my calculation was based on the actual sales price. And yes, there were sales commissions, and yes, I did add that to the basis. I just accepted their basis and moved on. Thanks again.