Restricted Stock Units (RSUs) reporting

[shamroc67]

In 2021, I had RSU stocks vest and immediately sold.

I received my Form 1099-B; however, it notes the cost or other basis as Unknown.  I just want to verify I am determining the cost basis properly for tax reporting.

- The sale and proceeds are listed on my W-2 as income.

- On the 1099-B it shows the proceeds - as an example I will say $20,200.

- I went to my paystub when the stocks were sold and see the amount as $22,200.  The extra $2,000 is the commission for completing the sale.

On turbotax , I listed the total proceeds as $20,200 and the total cost basis as $22,200 thus my short-term sales with cost basis NOT reported to the IRS is negative (-$2,000).

I checked Box B - short term noncovered

Is this the proper way to report?

Any help is greatly appreciated!

[RaifH]

Yes, for the most part. The only change I would suggest is leaving Box 1e Cost or other basis blank and then clicking the box beneath it that says The cost basis is incorrect or missing on my 1099-B. The next screen will allow you to enter your cost basis, which you correctly said would be $22,200 in your example. 

[shamroc67]

Raif,

Thank you for the prompt response.

The step-by-step process doesn't allow me to leave it blank. Is there a certain form you are referring too?

If you could direct me it would be appreciated!

[RaifH]

My instructions incorrectly assumed you were using TurboTax Online. To enter this in TurboTax Desktop:

1. Enter the sale as it appears on your 1099-B with Box B selected. For Box 1e Cost or other basis enter 0.
2. Continue through the next screen and answer Yes to Was this a sale of employee stock? On the next screen, select RSUs.
3. Continue through entering the details about the sale proceeds and the cost per share. If you paid commissions, do not include those in the Market Price on Vesting Date. Enter them on the Purchase commissions or Fees Paid line.
4. Once all the information is entered, the system should calculate the loss from the sale of your RSUs. 

[shamroc67]

I'm using Turbo Tax Premier on my desktop.

[RaifH]

Those instructions should work on TurboTax Premier Desktop. Let me know if you run into any problems. 

[shamroc67]

Thank you I was able to follow the process and it appears correct.

Under turbo tax premier. it shows the following:

Shows gross proceeds of $20k and a loss of $900  

(loss is the price of the commissions charged when sold)

As a result of the above it now shows a capital loss carryover of roughly $288.

Does that sound accurate?

[RaifH]

Yes, it sounds like the transaction was entered correctly.

As for the capital loss carryover, that would depend on your other investments. You can only show a maximum capital loss of $3,000 in a year to offset your other income. The remainder is carried over to future years until it can be used. 

Your $288 capital loss carryover will carry to 2022 when TurboTax imports your data from this year. 

[shamroc67]

Raif,

Thank you for your quick reply and guidance.

I greatly appreciate all the advice from the Turbo Tax experts!