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GA-Bruin
New Member

With EMC/Dell merger, RSUs vested & weresold for cash/new stock. The 1099B reflects only cash received, as does W2. How to adjust basis w/o misrepresenting amt on W2?

 
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7 Replies
GA-Bruin
New Member

With EMC/Dell merger, RSUs vested & weresold for cash/new stock. The 1099B reflects only cash received, as does W2. How to adjust basis w/o misrepresenting amt on W2?

Found the answer.  Looks like I can manually modify the ESP COMP WKS in Turbo Tax to only reflect the amount that was included on the W2.
GA-Bruin
New Member

With EMC/Dell merger, RSUs vested & weresold for cash/new stock. The 1099B reflects only cash received, as does W2. How to adjust basis w/o misrepresenting amt on W2?

Answer above incorrect.  Modifying this does not reflect the additional amount as a capital gain.  Instead, it will put the difference as additional income.  Still looking for an answer.

With EMC/Dell merger, RSUs vested & weresold for cash/new stock. The 1099B reflects only cash received, as does W2. How to adjust basis w/o misrepresenting amt on W2?

You are tying yourself into knots over nothing, and it appears that your problem is that you are trying to use the RSU interview to report the sale and the use of the RSU interview is absolutely not necessary.   There is no "income tax reporting" reason to use the RSU interview.  There really are only two legitimate reasons to use the RSU interview:

  1. The compensation created by the vesting wasn't reported on your W-2.  That didn't happen here
  2. You have no idea what your basis in the stock is.  I'll tell you that.

Your basis in the stock you acquired is:

   (GROSS number of shares that vested) x (per share FMV used by employer to calculate the W-2 amount reported).

For example, if you had an RSU for 100 shares that vested and your employer reported W-2 income for that vesting of $2,826.00, then you know that your per-share basis is $2,826.00 / 100 = $28.26, and you use that $28.26 as your basis when reporting any sales of the stock.   This is irrespective of the fact that out of that 100 shares maybe you only received 72 shares "after taxes."  Those taxes deal with the compensation reported on the W-2 and those taxes are also reported on the W-2.  Those shares and those taxes have nothing to do with the subsequent sale of the stock.

So now that you know how to determine your per share basis in the EMC stock you can treat the subsequent sale of EMC to Dell in exactly the same fashion you'd treat that sale if you'd purchased the EMC stock through your broker.  The "RSU" aspect of the shares has no relevance here.

Tom Young

Slance66
New Member

With EMC/Dell merger, RSUs vested & weresold for cash/new stock. The 1099B reflects only cash received, as does W2. How to adjust basis w/o misrepresenting amt on W2?

This is helpful, but we received no reporting to what EMC reported as W2 income for these shares.  Additionally, vesting occurred in connection with a merger, and we are advised to treat a portion as a section 351 exchange and a portion as a redemption.  Complicating this further, while normally any RSU sales result in "Net Issuance" it does not appear that this occurred or at least there is no data provided as to whether it occurred, because there was no "sale".

With EMC/Dell merger, RSUs vested & weresold for cash/new stock. The 1099B reflects only cash received, as does W2. How to adjust basis w/o misrepresenting amt on W2?

It definitely was a sale; that's why a 1099-B was issued.

I've discussed broadly the accounting for the EMC/DELL deal here: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3405510">https://ttlc.intuit.com/questions/3405510</a>

The original poster said that the compensation created by the vesting WAS reported on the W-2.  I assume you were employed by EMC, so why do you say there was no W-2 reporting?
Slance66
New Member

With EMC/Dell merger, RSUs vested &amp; weresold for cash/new stock. The 1099B reflects only cash received, as does W2. How to adjust basis w/o misrepresenting amt on W2?

Of course there is a W-2 but with one income number, including salary, bonus etc.  Can't determine what portion of that is attributable to the shares.  It would be helpful if they had told us what the reported ordinary income per share would be on vesting at 9/7.  I otherwise generally have what I need to report this correctly.
dmquarles
New Member

With EMC/Dell merger, RSUs vested &amp; weresold for cash/new stock. The 1099B reflects only cash received, as does W2. How to adjust basis w/o misrepresenting amt on W2?

Shares removed for taxes as well as the dollar value of those can be found in "Advices" section of "Statements & Reporting" on the UBS website. You have to do that for every month of activity you had in 2016 to see everything.
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