Can a loss be claimed against taxes for the reduced value of Paid RSUs and how do I recorded the loss in TurboTax Home & Business?

[michael-h-worsham]

In 2013, I was awarded a long term incentive grant. Half of the award was designated in cash and half in restricted stock units (RSU). In January 2015, the awarded was vested and paid out. Between 2013 and 2015, the per share value of the RSUs has fallen and the vested value is now less than the awarded value. Can I claim the loss (difference between awarded RSU value and Paid RSU value) against my taxes and how do I recorded the loss in TurboTax Home & Business?

[JohnH2 · Accepted solution]

You do not have a realization event for the decrease in value of the shares.  Many assets increase and decrease in value over time.  To make it into your tax return, the loss must be realized and recognized.  A sale accomplishes both of these.  You would need a sale to bring this loss into your return.