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selfprepare
Returning Member

Sold RSU - Should I answer yes or no to question on "was this a sale of employee stock"?

 

Hi.

 

Vested RSUs.  Company Sold to cover.  After a few months,  I sold the remaining.    Going through entering details in turbotax.

 

I get to a screen which asks "Was this a sale of employee stock?"


Sales from employee stock plans, including ESPP, NQSO, ISO, RS and RSU plans, often require special handling.  Options are:

1.  Yes,  this is stock that is acquired through an employee stock plan

2.   No,  this is not employee stock....

 

If I pick yes,  then it takes me through multitudes of screens asking for information that are probably only relevant for sold-to-cover sales.   

 

Sometimes  the details entered get added to compensation and sometimes the cost basis is not included for AMT calculation.   There seems to be no evident pattern for the last two issues. 

 

Should I pick 1 or 2? 

 

 

 

 

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2 Replies

Sold RSU - Should I answer yes or no to question on "was this a sale of employee stock"?

Restricted Stock

Restricted stock, also known as restricted securities, is stock of a company that is not fully transferable (from the stock-issuing company to the person receiving the stock award) until certain conditions (restrictions) have been met. Upon satisfaction of those conditions, the stock is no longer restricted, and becomes transferable to the person holding the award. Restricted stock is often used as a form of employee compensation, in which case it typically becomes transferable ("vests") upon the satisfaction of certain conditions, such as continued employment for a period of time or the achievement of particular product-development milestones, earnings per share goals or other financial targets. Restricted stock is a popular alternative to stock options, particularly for executives, due to favorable accounting rules and income tax treatment.
 
 
 
A lot depends on what you did when you got the options..
 
selfprepare
Returning Member

Sold RSU - Should I answer yes or no to question on "was this a sale of employee stock"?

Hmm.  10 RSU vested.  3 were sold-to-cover.   A month later I sold the remaining 7 to pay more taxes.  So should I pick that these 7 came from employee stock plans?  

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