1099-B from Sale of RSU Dividends

[Michael16]

My spouse received vested RSUs in May 2022 which were sold the same month. The sale of these RSUs was reported on our 2022 tax filings.

The account subsequently received a dividend payout for Q2 of 2022 that was immediately reinvested. Subsequent quarterly dividends were distributed and immediately reinvested until we sold the remaining shares in January 2023.

We received a 1099-B for the sale of these remaining stock shares in 2023.

When entering this information in TurboTax, I'm prompted whether these sales include ESPP, RSU, RS, NQSO, or ISO (yes/no). I bought the shares from a dividend distribution so is that considered part of the RSU? If it's considered non-employee stock, what do I list as the date the investment was acquired (on the 1099-B, it lists "VARIOUS" for box 1b)?

[ThomasM125 · Accepted solution]

Since you sold all of the original stock, you can treat the stock purchased with the dividends as non-employee stock to simplify things. If all of the shares were acquired more than a year before they were sold, you can assign a purchase date more than a year before you sold them so the gain on sale will be long term. For shares acquired within a year of sale, choose a date less than a year from the sale date. Any dividends that you reported as income on your tax return would be applied to the cost basis of the shares sold.