How to get "Cost Basis" 1099-B

[avigo45]

I have not been able to get a straightforward answer to this here or from my employer or broker. Really hoping to solve this today.

Employer sold off stock to pay taxes and I received a 1099-B regarding this. It is a RSU restricted stock unit.

Column E "Cost Basis" is empty on the 1099-B.  There is a value in the "FMV per share" column. 

How do I get my "Cost Basis"?

• Is it the "FMV per share" multiplied by the number of shares?
• Is it box 14 "other" on my W2
• Or is it something else?

[TomD8]

The per-share cost basis of your RSU's is the compensation created by the vesting divided by the GROSS number of shares received in that lot.

Since RSU's are typically sold to pay taxes on the same day as vesting, the cost basis of those shares should be very close if not equal to the proceeds from the sale.

[avigo45]

What is a "per share cost basis"? That is not what I am looking for. The 1099-B lists the "FMV Per Share". Let's say that is $15. And lets say it's 50 shares. 

The 1099-B says cost basis is shares sold (50) * Fair Market Value (FMV) per share reported in adjacent column ($15)

So that would mean 50x15=750

So 750 would be my cost basis to put in column "e" correct? 

Also, does granted mean vested? Nothing in the documents I have says anything it is vested, only granted.

[TomD8]

"So 750 would be my cost basis to put in column "e" correct? "

Correct, given what you describe from the 1099-B.

See "Tax liability of RSU's" in this web article for an explanation of the difference between "granting" and "vesting":

https://www.nerdwallet.com/article/investing/rsus

[avigo45]

Thank you. That number is just slightly higher than the proceeds so I guess that makes sense.

I also noticed that box 5 (noncovered security) is checked. Would this change anything? 

[TomD8]

No, that just means that the cost basis was not reported to the IRS by the broker.

[Mike9241]

The cost basis for Restricted Stock Units (RSUs) is typically the fair market value (FMV) of the shares on the day they vest. This value is used to determine the amount of income to report for tax purposes and the capital gain or loss when the shares are eventually sold123.

When RSUs vest, they are considered income and are taxed at ordinary income rates. If you sell the shares after they vest, any profit beyond the cost basis is subject to capital gains tax.