Relatório de imposto sobre opções de ações restrito

Relatório de imposto sobre opções de ações restrito
Se você receber uma opção para comprar ações como pagamento por seus serviços, você pode ter renda quando você recebe a opção, quando você exerce a opção, ou quando você descarta a opção ou ações recebidas quando você exerce a opção. Existem dois tipos de opções de compra de ações:
As opções concedidas nos termos de um plano de compra de ações de um empregado ou de um plano de opção de compra de ações de incentivo (ISO) são opções de estoque legais. As opções de compra de ações que não são concedidas nem em um plano de compra de ações de empregado nem em um plano de ISO são opções de ações não estatutárias.
Consulte a Publicação 525, Renda tributável e não tributável, para obter assistência para determinar se você recebeu uma opção de compra de ações estatutária ou não estatutária.
Opções de ações estatutárias.
Se seu empregador lhe concede uma opção de compra de ações legal, geralmente você não inclui nenhum valor em sua receita bruta quando você recebe ou exerce a opção. No entanto, você pode estar sujeito a imposto mínimo alternativo no ano em que você exerce um ISO. Para obter mais informações, consulte o Formulário 6251 (PDF). Você tem renda tributável ou perda dedutível quando vende as ações que você comprou ao exercer a opção. Você geralmente trata esse valor como um ganho ou perda de capital. No entanto, se você não atender aos requisitos especiais do período de detenção, você terá que tratar o rendimento da venda como receita ordinária. Adicione esses valores, que são tratados como salários, com base no estoque na determinação do ganho ou perda na disposição do estoque. Consulte a Publicação 525 para obter detalhes específicos sobre o tipo de opção de estoque, bem como regras para quando o rendimento é relatado e como a renda é reportada para fins de imposto de renda.
Opção de opção de opção de incentivo - Após o exercício de um ISO, você deve receber do seu empregador um Formulário 3921 (PDF), Exercício de uma Opção de Compra de Incentivo de acordo com a Seção 422 (b). Este formulário informará datas e valores importantes necessários para determinar o montante correto de capital e renda ordinária (se aplicável) a serem reportados no seu retorno.
Plano de Compra de Estoque de Empregados - Após a sua primeira transferência ou venda de ações adquiridas ao exercer uma opção concedida de acordo com um plano de compra de ações para empregados, você deve receber do seu empregador um Formulário 3922 (PDF), Transferência de Ações Adquiridas através de um Plano de Compra de Ações do Empregado em Seção 423 (c). Este formulário relatará datas e valores importantes necessários para determinar o valor correto do capital e renda ordinária a serem reportados no seu retorno.
Opções de ações não estatutárias.
Se o seu empregador lhe concede uma opção de ações não estatutária, o valor da receita a incluir e o tempo para incluí-lo depende se o valor justo de mercado da opção pode ser prontamente determinado.
Valor de Mercado Justo Determinado Justo - Se uma opção é negociada ativamente em um mercado estabelecido, você pode determinar prontamente o valor justo de mercado da opção. Consulte a Publicação 525 para outras circunstâncias em que você pode determinar prontamente o valor justo de mercado de uma opção e as regras para determinar quando você deve reportar renda para uma opção com um valor de mercado justo prontamente determinável.
Valor de Mercado Justo Não Determinado Justamente - A maioria das opções não estatutárias não possui um valor de mercado justo prontamente determinável. Para opções não estatísticas sem um valor de mercado justo prontamente determinável, não há evento tributável quando a opção é concedida, mas você deve incluir no resultado o valor justo de mercado das ações recebidas em exercício, menos o valor pago, quando você exerce a opção. Você tem renda tributável ou perda dedutível quando vende as ações que você recebeu ao exercer a opção. Você geralmente trata esse valor como um ganho ou perda de capital. Para informações específicas e requisitos de relatórios, consulte a Publicação 525.

Como as ações restritas e as RSUs são tributadas.
A remuneração dos empregados é uma despesa importante para a maioria das empresas; portanto, muitas empresas acham mais fácil pagar pelo menos uma parte da remuneração de seus empregados sob a forma de estoque. Este tipo de compensação tem duas vantagens: reduz o montante da compensação em dinheiro que os empregadores devem pagar e também serve de incentivo para a produtividade dos funcionários. Existem muitos tipos de compensação de estoque, e cada um tem seu próprio conjunto de regras e regulamentos. Os executivos que recebem opções de estoque enfrentam um conjunto especial de regras que restringem as circunstâncias em que eles podem exercitar e vendê-los. Este artigo examinará a natureza das ações restritas e unidades de estoque restritas (UREs) e como elas são tributadas.
O que é estoque restrito?
O estoque restrito é, por definição, um estoque que foi concedido a um executivo que não é transmissível e sujeito à confiscação sob certas condições, como o encerramento do trabalho ou a falha no cumprimento de benchmarks de desempenho corporativo ou pessoal. O estoque restrito também geralmente fica disponível para o destinatário sob um cronograma de vencimento graduado que dura vários anos.
Embora existam algumas exceções, o estoque mais restrito é concedido aos executivos que são considerados como "insider" de uma corporação, tornando-o sujeito aos regulamentos de informações privilegiadas de acordo com a SEC Rule 144. O não cumprimento a esses regulamentos também pode resultar em confisco. Os acionistas restrito têm direito de voto, o mesmo que qualquer outro tipo de acionista. As bolsas de ações restritas tornaram-se mais populares desde meados da década de 2000, quando as empresas foram obrigadas a financiar bolsas de opções de ações.
O que são unidades de estoque restrito?
As RSUs se parecem com opções restritas de estoque conceitualmente, mas diferem em alguns aspectos fundamentais. As URE representam uma promessa não garantida pelo empregador de conceder um número definido de ações do empregado após a conclusão do cronograma de aquisição. Alguns tipos de planos permitem que um pagamento em dinheiro seja feito em vez do estoque, mas esse tipo de plano está em minoria. A maioria dos planos exige que as ações reais das ações não sejam emitidas até que as cláusulas subjacentes sejam atendidas.
Portanto, as ações de estoque não podem ser entregues até que os requisitos de aquisição e confisco tenham sido satisfeitos e a liberação seja concedida. Alguns planos da RSU permitem que o funcionário decida dentro de certos limites exatamente quando ele ou ela gostaria de receber as ações, o que pode ajudar no planejamento tributário. No entanto, ao contrário dos acionistas restritos padrão, os participantes da RSU não têm direito de voto sobre o estoque durante o período de carência, porque nenhum estoque já foi emitido. As regras de cada plano determinarão se os titulares de RSU recebem equivalentes de dividendos.
Como o estoque restrito é tributado?
O estoque restrito e as URE são tributadas de forma diferente do que outros tipos de opções de compra de ações, como planos de compra de ações de funcionários ou não estatutários (ESPPs) estatutários ou não estatutários. Esses planos geralmente têm conseqüências fiscais na data do exercício ou venda, enquanto as ações restritas geralmente se tornam tributáveis ​​após a conclusão do cronograma de aquisição. Para planos de ações restritas, o valor total do estoque adquirido deve ser contado como receita ordinária no ano da aquisição.
O montante que deve ser declarado é determinado subtraindo o preço original de compra ou exercício do estoque (que pode ser zero) do valor justo de mercado do estoque na data em que o estoque se torna totalmente adquirido. A diferença deve ser reportada pelo acionista como renda ordinária. No entanto, se o acionista não vender a ação ao adquirir e vendê-la mais tarde, qualquer diferença entre o preço de venda e o valor justo de mercado na data da aquisição é reportada como um ganho ou perda de capital.
Seção 83 (b) Eleição.
Os acionistas de ações restritas podem denunciar o valor justo de mercado de suas ações como receita ordinária na data em que são concedidas, em vez de serem adquiridas se desejarem. Esta eleição pode reduzir consideravelmente o montante dos impostos que são pagos no plano, porque o preço das ações no momento da concessão é muitas vezes muito menor do que no momento da aquisição. Portanto, o tratamento de ganhos de capital começa no momento da concessão e não na aquisição. Este tipo de eleição pode ser especialmente útil quando existem períodos de tempo mais longos entre quando as ações são concedidas e quando elas se entregam (cinco anos ou mais).
John e Frank são ambos os principais executivos em uma grande corporação. Cada um recebe subsídios de ações restritas de 10.000 ações por zero dólares. As ações da empresa estão sendo negociadas em US $ 20 por ação na data de outorga. John decide declarar o estoque ao adquirir, enquanto o Frank elege o tratamento da Seção 83 (b). Portanto, John não declara nada no ano de concessão, enquanto o Frank deve reportar US $ 200.000 como renda ordinária. Cinco anos depois, na data em que as ações se tornaram totalmente investidas, as ações negociam US $ 90 por ação. John terá que denunciar um enorme US $ 900.000 de seu saldo de estoque como renda ordinária no ano da aquisição, enquanto Frank não informa nada, a menos que ele venda suas ações, que seria elegível para o tratamento de ganhos de capital. Portanto, Frank paga uma taxa mais baixa na maioria dos recursos de ações, enquanto John deve pagar a maior taxa possível sobre o valor total do ganho realizado durante o período de aquisição.
Infelizmente, existe um risco substancial de confisco associado à eleição da Seção 83 (b) que ultrapassa os riscos de confisco padrão inerentes a todos os planos de ações restritas. Se Frank deixar a empresa antes que o plano se torne investido, ele renunciará a todos os direitos sobre o saldo total da ação, mesmo que ele tenha declarado os $ 200,000 de ações concedidos a ele como receita. Ele não poderá recuperar os impostos que ele pagou como resultado de sua eleição. Alguns planos também exigem que o empregado pague pelo menos uma parcela da ação na data da concessão, e esse valor pode ser reportado como uma perda de capital nessas circunstâncias.
Tributação de RSUs.
A tributação das RSUs é um pouco mais simples do que para os planos de estoque restritos padrão. Como não há estoque real emitido em concessão, nenhuma eleição da seção 83 (b) é permitida. Isso significa que há apenas uma data na vida do plano em que o valor do estoque pode ser declarado. O montante reportado será igual ao valor justo de mercado das ações na data da aquisição, que também é a data de entrega neste caso. Portanto, o valor do estoque é relatado como renda ordinária no ano em que o estoque se torna adquirido.
The Bottom Line.
Existem muitos tipos diferentes de estoque restrito, e as regras fiscais e de confisco associadas a eles podem ser muito complexas. Este artigo cobre apenas os destaques deste assunto e não deve ser interpretado como conselho fiscal. Para obter mais informações, consulte o seu consultor financeiro.

Como evitar as armadilhas fiscais das unidades de estoque restritas.
As unidades de estoque restrito são o prêmio brilhante para inúmeros funcionários em tecnologia e outras indústrias em crescimento.
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No entanto, as URE são tributadas de forma diferente das opções de estoque, e muitos funcionários que as recebem simplesmente não entendem as sérias implicações.
As opções de ações têm uma vantagem fiscal porque são tributadas quando você exerce sua opção. As URE, no entanto, são tributadas no momento em que elas são investidas, e não quando você vende.
Como as RSU cresceram mais nos últimos cinco anos, percebemos um problema emergente com a forma como elas são tratadas. Muitos destinatários insistem em manter suas URE, mesmo depois de se entregarem. Ao fazê-lo, eles estão caindo na armadilha do risco de concentração - também conhecido como colocar todos os seus ovos em uma cesta.
Por si só, as RSUs são um bom e sólido veículo de compensação de equidade. Uma RSU é uma bolsa avaliada em termos de ações da empresa, mas o estoque da empresa não é emitido no momento da concessão. Uma vez adquiridas as unidades, a empresa distribui ações, ou às vezes dinheiro, iguais ao seu valor. Ao contrário das opções de estoque, que são inúteis se os preços das ações diminuem abaixo do preço da opção, as RSUs mantêm um valor intrínseco, a menos que sua empresa fique fora do mercado.
O desafio com RSU cresce de como usá-los. Para a maioria dos destinatários, a abordagem correta é apanhar as unidades uma vez adquiridas e depois usar o produto para construir uma carteira de investimentos diversificada.
A diversificação de suas participações em classes de ativos complementares permite equilibrar o risco e a recompensa para que você tenha a melhor chance de atingir metas de investimento sem se preocupar em ser limpas. É prática padrão entre pessoas que se tornaram financeiramente bem-sucedidas e querem permanecer assim.
Isso não quer dizer que você não deve manter nenhum estoque de sua empresa - longe disso. É excitante ser um dono e não apenas um empregado. A chave é cercar esse estoque da empresa com investimentos complementares, como títulos e ações em outras indústrias.
Mas muito poucos receptores RSU estão fazendo isso; muitos se apegam às suas unidades, em seu perigo. Isso está acontecendo por causa do mal-entendido do tratamento fiscal das RSUs.
Recentemente, adicionamos um cliente que queria usar o produto de suas RSUs para ajudar a construir uma casa. O plano do cliente era aguardar um ano, vender as unidades adquiridas e depois começar a construir. Após um ano, ele explicou, suas UREs seriam tributadas na taxa de ganhos de capital de longo prazo - que é menor do que a taxa de ganhos de capital de curto prazo.
Sua riqueza: conselhos semanais sobre como administrar seu dinheiro.
Inscreva-se para obter a sua riqueza.
O cliente estava trabalhando sob uma percepção errada comum. As URE, de fato, são tributadas assim que elas se entregam. Muitas vezes, os empregadores reterão um montante de ações equivalente à taxa cobrada após aquisição. Essa lei de impostos é onerosa, a propósito: dependendo de onde você mora, o Internal Revenue Service, juntamente com seu estado de residência, pode acabar levando quase 50% do valor de suas RSUs. E não há muito a ser feito sobre isso.
De volta a esse cliente: explicamos a ele que não só ele não precisava esperar para mergulhar em seu estoque investido, mas essa espera poderia ser contraproducente. Caso o preço das ações da empresa cai antes de vender, ele perderia duas vezes. Em primeiro lugar, suas ações perderão valor e, em segundo lugar, porque as UREs são tributadas assim que cedem, ele pagará impostos pelo valor superior e original.
Uma razão mais comum de que os funcionários se apegam às suas URE é a esperança direta de se tornar cada vez mais rica. Quando eu sugeri a um cliente de 20 coisas que ele vendeu suas UREs e investir o produto em uma carteira diversificada, ele basicamente me acusou de ser um zumbido.
"Porque eu faria isso?" ele perguntou. O estoque de sua empresa de tecnologia tinha sido apreciado rapidamente, ele explicou, e não havia motivos para acreditar que isso iria parar.
Minha resposta: você não pode ver o futuro. Como todas as empresas, as empresas de tecnologia têm longos períodos de preços planos ou decrescentes das ações - e sim, eles muitas vezes buscam. Basta olhar para atrasadas, grandes empresas como Pets, Webvan ou Covad. E lembre-se, as recessões são um fato da vida, e os estragos que eles podem causar nos preços das ações e nas próprias empresas são muito reais.
É natural pensar que a empresa para a qual trabalha é diferente. E talvez seja. Mas quando você limita seus investimentos ao estoque de qualquer empresa, esse é um comportamento realmente arriscado.
Se a sua empresa tiver problemas, não só sua cratera de estoque, mas também poderá encontrar-se fora de um trabalho. Quando a sua riqueza é toda na forma do estoque de sua empresa, você não está apenas colocando todos os seus ovos em uma cesta - você também está morando nessa cesta.
Muitos funcionários se apegam às suas URE porque têm medo de serem "deixados de fora". Eles são assombrados por premonições de seus colegas de trabalho ficando rico enquanto se sentam à margem.
Uma maneira de lidar com esses tipos de nervosismo é usar uma forma de média em dólares. Se sua empresa está crescendo e suas ações estão crescendo, venda porções pequenas de suas UREs em intervalos regulares e investir o produto em sua carteira diversificada. Dessa forma, você participará de pelo menos parte dos ganhos da sua empresa, criando uma sólida base financeira.
Se as RSU o empurraram para as fileiras dos ricos, parabéns. Mas lembre-se: você precisará tomar decisões sábias para ficar lá.
- Por Bijan Golkar, CEO e consultor sénior da FPC Investment Advisory.

Vendas e relatórios tributários das unidades de ações restrito (RSU).
RSU significa unidades de ações restritas. É a nova forma de compensação baseada em ações que ganhou popularidade depois que os empregadores são obrigados a avaliar as opções de ações dos empregados. A maior diferença entre as URE e as opções de compra de ações dos empregados é que as UREs são tributadas no momento da aquisição, enquanto as opções de compra de ações geralmente são tributadas no momento do exercício da opção. O empregador é obrigado a reter impostos assim que as URE se tornam investidas.
Em uma postagem anterior, Opções de retenção de impostos das Unidades de ações restritas (RSU), escrevi sobre o que escolhi entre as três escolhas de retenção de impostos # 8212; venda no mesmo dia, venda para cobrir e transferência de dinheiro e # 8212; e porque. Desta vez, escrevo sobre como contabilizar os impostos sobre a declaração de impostos, especialmente se você usar o software de imposto como o TurboTax ou o H & amp; R Block At Home.
Eu irei usar este exemplo simples:
Suponha que você tenha 100 UFP investidas em 31 de outubro. O preço de fechamento da ação nesse dia é de US $ 50 e a taxa de retenção de impostos é de 40%.
Independentemente da escolha que você fez para a retenção de impostos & # 8212; alguns empregadores não lhe dão uma escolha & # 8212; seu empregador incluirá em seu W-2 como salários o valor total das UREs adquiridas. No nosso exemplo, é $ 50 * 100 = $ 5.000. Eles também reterão a mesma quantidade de impostos, independentemente da sua escolha. Neste exemplo, é US $ 5.000 * 40% = $ 2.000. Eles também incluirão os impostos retidos no seu W-2. Como você contabiliza os impostos sobre a sua declaração de imposto para o resto dependerá da sua escolha de retenção de impostos.
1. Emissão líquida. Na emissão da rede, você não tem escolha sobre retenção de impostos. O empregador deduzirá uma série de ações de suas ações adquiridas e lhe dará o resto. Você não recebe um 1099-B de um corretor pelas ações que você não recebeu. No nosso exemplo, embora seu empregador diga que você possui 100 ações investidas, você só recebe 60 ações.
Você não deve denunciar nada para o evento de aquisição de direitos. Use os números em seu W-2 como está.
Anote o preço de fechamento na data de aquisição. Você deve lembrar a data e esse número até você vender as ações restantes. Em nosso exemplo, esse $ 50 por ação. Se você vender as 60 ações por mais de US $ 50 por ação, você terá um ganho de capital. Se você os vender por menos, você terá uma perda de capital. Você declara o ganho ou perda de capital no ano em que você vende as ações restantes. Para um guia passo a passo sobre como denunciar a venda no TurboTax, veja Unidades de estoque restrito (RSU) e TurboTax: Emissão líquida.
2. Venda no mesmo dia. Se você fizer essa escolha, você vende tudo. Deixe-se dizer no dia seguinte à data de aquisição, as ações são vendidas por um total de US $ 4.989. O empregador retém US $ 2.000. Você fica com US $ 2.989. No horário dos impostos, você receberá um 1099-B do seu corretor listando a venda de ações no valor de US $ 4.989. Você entra no TurboTax ou H & amp; R Block At Home ou no Schedule D do Form 1040:
Descrição: 100 partes XYZ, Inc.
Produto líquido: 4.989.
Data de Venda: 11/01 / 20xx.
Base de custo: 5.000.
Data de aquisição: 10/31 / 20xx.
Sua base de custos é o valor que seu empregador incluiu no seu W-2, que é o preço de fechamento na data de aquisição, o número de ações adquiridas. Neste exemplo, você mostrará uma perda de curto prazo de US $ 11 em sua declaração de imposto devido à comissão de corretagem e à taxa da SEC. A renda e as retenções de impostos associadas já estão incluídas no seu W-2. Use esses números como estão.
3. Vender para cobrir. [Atualização em 9 de abril de 2008: escrevi um post de seguimento RSU Sell To Cover Deconstructed para esclarecer esta opção. Avance para essa postagem se você preferir.] Se você fizer essa escolha, ou se você não tiver escolha, seu empregador vende apenas ações suficientes para cobrir a retenção de impostos. A principal diferença entre Vender para Cobertura e Emissão Líquida é que o empregador usa um corretor em Vender para Cobrir, mas não usa um corretor em Emissão Líquida. Suponha que 41 ações sejam vendidas por US $ 2.030. O empregador tira US $ 2.000 por retenção de impostos. Você fica com US $ 30 em dinheiro e as restantes 59 ações. No horário dos impostos, você receberá um 1099-B da sua lista de corretores em que a venda de estoque prossiga de US $ 2.030. Você entra no TurboTax, H & amp; R Block At Home ou no Schedule D do Form 1040:
Descrição: 41 partes XYZ, Inc.
Produto líquido: 2.030.
Data de Venda: 11/01 / 20xx.
Base de custo: 2.050.
Data de aquisição: 10/31 / 20xx.
Mais uma vez, sua base de custo para as ações que você vendeu é o valor que seu empregador incluiu no seu W-2 para essas ações, que é o preço de fechamento na data de aquisição, o número de ações que você vendeu para retenção de imposto ($ 50 * 41 = $ 2.050). Após a venda, você mostra uma perda de curto prazo de $ 2.050 e # 8211; $ 2.030 = $ 20 por causa da comissão de corretagem e da taxa da SEC. Novamente, a renda e as retenções de impostos associadas já estão incluídas no seu W-2; Você apenas usa esses números como está.
Para as restantes 59 ações, você mantém uma base de $ 50 por ação ($ 50 * 59 = $ 2.950). Você deve lembrar a data e esse número até você vender as ações restantes. Sempre que você os vende, você entra no TurboTax, H & amp; R Block At Home ou no Schedule D do Form 1040:
Descrição: 59 partes XYZ, Inc.
Produto líquido: o que quer que você os venda, copie de 1099-B.
Data de Venda: sua data de venda.
Base de custo: 2.950.
Data de aquisição: 10/31 / 20xx.
Você mostrará um ganho ou perda de curto prazo ou longo prazo para essas ações remanescentes, dependendo da data de venda e do preço de venda.
4. Transferência em dinheiro. Se você fizer essa escolha, você dá ao seu empregador dinheiro pela retenção de impostos. Eles não vendem nenhuma das suas ações. Você pode vender as ações imediatamente ou mantê-las por muito tempo que você quiser. A contabilidade fiscal é a mesma que se você comprou as ações no preço de fechamento na data de aquisição. Sempre que você os vende, você entra no TurboTax, H & amp; R Block At Home ou no Schedule D do Form 1040:
Descrição: 100 partes XYZ, Inc.
Produto líquido: o que quer que você os venda, copie de 1099-B.
Data de Venda: sua data de venda.
Base de custo: 5.000.
Data de aquisição: 10/31 / 20xx.
Você mostrará um ganho ou perda de curto prazo ou longo prazo para essas ações, dependendo da data de venda e do preço de venda. A receita da aquisição de RSU e as retenções de impostos associadas já estão incluídas no seu W-2, e você apenas usa esses números como está.
Isso é tudo. Espero que isso seja útil para alguém que procura informações sobre o tratamento tributário e as implicações das vendas da RSU.
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Na venda para cobrir, você não conta para as outras 59 ações que você realizou? Dado apenas a opção de venda para cobertura e as vencimentos trimestrais das URE em 2007, viro quatro vezes durante o qual as ações são vendidas automaticamente para cobrir os impostos. Eu vendo as ações remanescentes de três desses quatro coletes em 2007. 1099B lista essas sete transações. Meu W2 no entanto, lista TODOS os valores investidos da RSU. Não me preocupo em relatar no cronograma D o valor adquirido das ações I & # 8217; ainda estou segurando?
Pergunta sobre o cálculo de ganhos no & # 8220; Cash at Transfer: Eu recebi 3000 RSU avaliado em US $ 30 por ação. Minha empresa exige retenção de 44% na venda de ações ou pagamento em dinheiro 44%. Se eu liquidar líquido em questão, eu possuo 1.680 ações. Se eu vender em um ano em US $ 40, eu reconheço o produto de US $ 67200 (1.680 * $ 40) menos o custo de US $ 50400 ou um ganho de 16.800. OU, no momento da emissão, eu pago taxas de imposto igual a (3.000 * $ 30 = 90.000 * 44% = $ 39.600). Agora eu possuo 3.000 ações quando eu vendo em US $ 40 o que é meu ganho? A participação líquida reflete o custo dos impostos pagos em questão em menos ações. Como você reflete o dinheiro pago em questão em sua ganho de ganho futuro? SOCORRO!
JK & # 8211; Seu ganho seria $ 30k ($ 10 em 3.000 ações).
grande pergunta anônima1- não consegui escolha sobre a forma como os meus rsu foram tratados - a empresa vendeu o suficiente no dia da aquisição de direitos para cobrir os impostos que eles retiveram. Em um caso, eu tinha cerca de 152 ações coleteiras e 54 foram vendidas imediatamente para cobrir os impostos. Tenho certeza de que eu estou no balde b na descrição acima, mas estou interessado em ver a resposta ao seu q.
Se você está segurando as ações restantes (59 ações no meu exemplo), você não conta para eles agora. Você conta para eles quando você os vende, o que pode ser no mesmo ano ou muitos anos depois. Naquele momento, você registra seu produto de vendas e uma base de custo que é igual ao valor dessas ações no momento da aquisição. Basicamente você trata essas ações como se você as comprou no preço que sua empresa calculou no seu W-2. Por isso, eu disse que você deve se lembrar do valor dessas ações restantes no momento da aquisição até você as vender.
Aqui está o meu problema. 100 RSU investidos em abril de & # 8217; 07 por US $ 20 e 39 RSUs foram vendidos para cobrir os impostos @ $ 20 (total 39 * 20 = 780) no mesmo dia que a aquisição. Mas, no meu W2, recebi renda para 100 URS (100 * 20 = $ 2000). Como relato os 39 RSU vendidos para cobrir os impostos?
Para as 39 UER vendidas por retenção de impostos, no Anexo D:
4 / xx / 2008 venda 780 base de custos 780 ganho / perda 0.
Obrigado pela sua publicação útil sobre o tratamento fiscal adequado para RSU. Tenho uma pergunta sobre concessões de ações restritas. Em 2007, ocorreram três transações relevantes:
Jan07 & # 8211; Algumas ações são adquiridas e ocorre uma venda para cobrir.
Mar07 & # 8211; Venda de ações remanescentes daquelas que foram investidas em Jan07.
Dec07 e # 8211; As ações adicionais são adquiridas e ocorre uma venda para cobrir.
Recebi documentação para as três transações, mas recebi apenas um 1099-B e ele apenas cobre a transação Mar07. Preciso contabilizar as transações de Jan07 e Dec07 em meus formulários de impostos? Em caso afirmativo, eu deveria ter recebido um 1099-B para aqueles ou eu apenas uso a documentação que recebi da transação? # 8211; uma confirmação de lapso & # 8220; & # 8221; mostrando ações caducadas, ações vendidas para cobrir impostos e ações líquidas?
Matt & # 8211; A mesma resposta que concordei com Jagadeesh no comentário anterior. Alguns empregadores não utilizam um corretor para as transações de venda para cobrir e não mostram em 1099-B. Nesse caso, você não tem ganho ou perda na venda para cobrir. A venda prossegue igual exatamente a retenção de impostos relatada em seu W-2.
Suponhamos que 40 ações foram vendidas para cobrir a retenção de impostos de US $ 1.000, eu ainda entraria no Anexo D:
1 / xx / 2007 40 ações XYZ Corp. venda $ 1.000 custo base $ 1.000 ganho / perda $ 0.
Faça anotações semelhantes para a transação de sell-to-cover de dezembro.
Informações excelentes sobre RSU & # 8217; s! O empregador atual é um MasterLimitedPartnership (PTP) & # 8211; então em vez da empresa & # 8220; stock & # 8221 ;, estou lidando com a empresa de recebimento & # 8220; unidades & # 8221 ;. Você sabe se estes são tratados & # 038; informou sobre o imposto de renda igual à RSU?
Muito útil. Eu estava perdido no TurboTax até eu ler sua postagem. Muito obrigado.
Muito obrigado pelos detalhes. No imposto de turbo, entrei todos os meus detalhes. Mas quando eu clicar em Concluído, eu me leva à página do Resultado do Plano de Ações do Empregado e mostra os seguintes detalhes em uma tabela.
Plano de estoque, Amt nós calculamos, É no w-2, Valor real no w2.
Aqui está um exemplo:
Número de ações investidas: 100.
Número de estoques vendidos para cobrir o imposto: 40.
Os resultados mostram na página de imposto Turbo acima.
Plano de estoque: RSU.
Quantidade calculada: $ 4000.
É na W2: sim.
Quantidade real em W2: EM BRANCO.
Qual deve ser o valor na quantidade atual da coluna 4000 ou 10000. Em W2 eu tenho 10000 como meu rendimento. se eu entrar em 10000, meu retorno sobe por volta de 2000. Por favor, deixe-me saber qual deve ser o valor correto.
Você deve ter uma versão diferente do TurboTax. Minha versão deluxe não tem uma mesa assim. De qualquer forma, você deve olhar para o Schedule D que ele produz para você. Coloque um valor e, em seguida, abra o formulário do Schedule D. O cronograma D deve mostrar $ 0 de ganho / perda para essas 40 ações.
Diz Steve Loeppky.
Só queria dizer obrigado. Sua redação foi muito útil. Obrigado novamente!
TFB, Nice Information. Muito útil. No entanto, no meu caso, meu empregador reteve ações para cobrir os impostos. É o mesmo que a venda para cobrir. O 1099 do corretor não mostra a venda, mas o W2 tem o lucro tributável da VIR investida n. ° 8217; s. Qualquer coisa deve ser listada na minha agenda D?
70 RSU disponível para mim.
@Anonymous & # 8211; Mais uma vez, o mesmo que vender para cobrir, exceto que nenhum corretor estava envolvido e não 1099-B. A mesma resposta, como comentário para Jagadeesh e Matt.
70 RSU disponível para você.
Suponha que o preço de fechamento na data da aquisição é de US $ 10 por ação. Insira o Schedule D:
Descrição: 30 partes da XYZ Corp.
Produto líquido: 300.
Data de venda: xx / xx / xxxx (igual à data de aquisição)
Data de aquisição: xx / xx / xxxx (igual à data de aquisição)
Obrigado pelo site.
Eu preciso de ajuda.
Houve 4 vezes no ano passado, quando.
minhas ações investidas (4 partes cada vez) e a empresa fez uma venda para cobrir cada vez.
NÃO ESTOU vendendo nenhum destes.
Agora, comprei algumas ações através do programa ESPP da minha empresa.
Então, eu preciso me preocupar com as vendas de lavagem devido à venda da RSU para cobrir?
O TurboTAX deluxe não me fornece uma tela para vendas da RSU. Será que as vendas da Investement são vendidas em estoque?
ap & # 8211; Você só se preocupa com a venda de lavagem quando a venda resultou em uma perda. Se um corretor não estiver envolvido, a venda-a-capa da empresa geralmente não cria nem ganho nem perda. Se você tiver uma perda de vender para cobrir, então você deve levar em conta as regras de venda de lavagem.
Obrigado TBF. Eu acho que uma perda está envolvida (mas muito pequena), pois havia uma taxa de corretor de US $ 5 por venda.
Então, as vendas de lavagem se aplicariam, correto? Eu fiz uma compra de ESPP durante este tempo.
outra pergunta: devo verificar a caixa onde diz que os impostos foram retidos nesta venda?
No meu caso, o CO fez uma venda para cobrir e o valor vendido foi reportado no meu W-2 sob impostos retidos.
Finalmente, isso aconteceria com as vendas de investimentos no TurboTax?
ap & # 8211; Se você pensa na transação de venda a cobrir RSU como esta série de transações, ficará muito claro:
& # 8211; A empresa paga-lhe um bônus em dinheiro (renda na W2)
& # 8211; Você usa o bônus em dinheiro para comprar ações (base de custo em ações)
& # 8211; Você vende algumas ações (Ganho / perda da Geração D do item: receitas de vendas menos base de custo, menos taxa de corretagem, se houver)
& # 8211; Você transfere o produto das vendas para a empresa por retenção de imposto (imposto retido no W2)
Então, se você comprou ações na janela de venda de lavagem depois de tomar uma pequena perda, se eu estivesse, aplique a regra de venda de lavagem, ou seja, não tire a perda na venda, mas adicione a base de custo nas ações da ESPP por $ 5.
& # 8216; No & # 8217; para a caixa de retenção de impostos e sim, isso vai em vendas de investimento.
O demônio de Maxwell diz.
Aqui é um complicado:
Meu empregador só dá a opção de vender para cobrir.
A venda para cobrir aconteceu no dia seguinte à aquisição e o preço da ação caiu significativamente.
O pagamento regular do meu empregador para compensar a diferença.
Meu W-2 mostra que eu paguei o imposto sobre o valor total das ações no dia em que adquiriram.
Eu acho que posso denunciar uma perda de capital para a venda para cobrir, pois era um preço mais baixo do que o relatado no meu W-2 e eu fiz a diferença de pagamento.
Mas & # 8230; meu 1099 não tem uma entrada para a venda para cobrir & # 8211; Posso ainda denunciá-lo no Schedule-D?
Maxwell & # 8211; Se você recebe 1099 ou não, você ainda vendeu ações. Se você vendeu menos do que o seu custo, você teve uma perda. Veja o meu comentário anterior sobre como o sell-to-cover é desconstruído.
Eu tinha 8000 ações RSU colecionadas em pequenos blocos entre os anos 1998-2001. Eu já vendi 2000 partes, devo usar a metodologia FIFO para reportar base ao IRS? Além disso, eu ouvi conselhos diferentes sobre o preço do estoque pode ser usado para base de imposto. Pode-se usar o preço da data de concessão ou o preço da data de aquisição como base de imposto?
LM & # 8211; Sua base em cada lote é a quantidade de renda que seu empregador incluiu no seu W-2. Se eles usaram o preço na data de aquisição, você também deve usar esse preço. Se eles usaram o preço na data da concessão (embora eu não tenha ouvido falar de qualquer caso), você também deve usar esse preço. A menos que você identificou especificamente o (s) lote (s) no momento em que vendeu essas ações, você deve usar FIFO. Você pode selecionar lotes arbitrariamente após o fato. Consulte Como identificar as ações que você vende no Fairmark.
Aqui está uma questão fiscal estimada e não uma questão RSU 🙂
Eu nunca precisei pagar impostos estimados até agora, embora eu devesse alguns impostos no ano passado e muito este ano.
Agora, o TurboTax imprimiu os vouchers fiscais trimestrais para mim.
Qual é a abordagem recomendada aqui? Devo pagar ou mudar as retenções?
Anon & # 8211; Alterar as retenções. É muito mais fácil. Não há prazo de pagamento trimestral. Você não deve lembrar de enviar o cheque no correio. Você não precisa lembrar o quanto você pagou. Seu empregador informa sobre você no seu W-2.
Eu tinha restrito unidades de ações que foram investidas em 2007. O mês anterior à aquisição de direitos-eu assinei um acordo com a minha empresa de que todas as ações seriam vendidas após aquisição. O estoque foi avaliado em US $ 31 por ação. O estoque foi vendido por US $ 29. O prêmio de $ 31 por ação está incluído no meu w-2 como salários na caixa 1. Eu estou usando o imposto de turbo para calcular meus impostos de 2007. A diferença entre o preço premiado e recebido é cerca de $ 10.000 de perda. Como o aumento de capital deve compensar é incluído em um W-2- Existe alguma maneira de reconhecer essa perda em 2007? Agradeceria qualquer conselho ou orientação. Obrigado.
JackieB & # 8211; É exatamente como se o empregador lhe desse um bônus em dinheiro e você comprou essas ações em US $ 31 e vendeu US $ 29. Se você vendeu outros investimentos que produziram ganhos de capital ou se você recebeu distribuição de ganhos de capital de alguns fundos de investimento, a perda compensará esses ganhos. Depois disso, você pode compensar $ 3.000 de renda ordinária. Se você ainda tiver mais perda, a perda será transferida para o próximo ano fiscal.
Eu fiz uma publicação no meu blog sobre como lidar com RSU & # 8217; s no Turbo Tax Premier. Obrigado por suas dicas que me ajudaram a entender. ligação.
Sob o & # 8220; Vender para cobrir & # 8221; opção, entendo que você mostra o ganho ou a perda no Anexo D (ganhos de capital), mas o que eu preciso de esclarecimentos é o valor do imposto associado às ações retido na fonte. A empresa detém impostos 100 ações a um valor de mercado por ação de $ 25 & # 8230 ;. assim é que US $ 2500 adicionado ao seu imposto de renda do Fed witheld ou já está no W2?
Obrigado pela informação sobre a venda para cobrir. Eu entendo sobre reportar a venda no Cronograma D. Minha pergunta é sobre todos os impostos alimentares, saúde pública, segurança social, imposto estadual sobre o conselho de transações da RSA. Isso aumenta o que está no meu W2? Não me pareceu que estava incluído no meu W2, com base na revisão de meus talões de pagamento para o prazo de venda. por exemplo, se o conselho de venda diz que os impostos pagos são de US $ 100 e W2 diz que o imposto pago é de US $ 345, se o imposto pago em 1040 seja de US $ 445? (parece auto-evidente, mas desde que eu digitei tudo agora & # 8230;)
As receitas e retenções de impostos relacionadas com RSU já estão incluídas no seu W-2. Use os números de W-2 como estão.
Eu fiz uma transferência de dinheiro para pagar o imposto (sua opção 3). Como deve ser exibido no W2?
A base de custo das URE foi utilizada para mostrar a receita corretamente, mas os impostos retidos não incluem o dinheiro do imposto que eu paguei em dinheiro. O W2 mostra isso de acordo com as deduções do Ano até a compensação de estoque restrito e a última folha de pagamento 31/12/2007 inclui isso em deduções após impostos. Estou confuso quanto ao que mostrar no Anexo D e como obter o imposto retido incluído na apresentação para este ano.
Qualquer ajuda seria ótimo.
Receitas RS: 1179.
O cancelamento de estoque restrito é mostrado como 677.33 Th A transferência de dinheiro que fiz foi na verdade $ 501.67 (42.55% de imposto)
Sridhar & # 8211; Você transferiu dinheiro. Nenhuma participação foi vendida. Portanto, não há nada para reportar no Schedule D para o ano passado (a menos que você tenha vendido as ações no final do ano). Use os números W-2 como este. Tanto a receita de 1.179 quanto as 501.67 taxas que você pagou já estão incluídas no seu W-2.
Meu marido tem RSU e em sua declaração de renda tributável listada.
28/10/07 investiu 68 ações Valor base 13,57, W-2 renda 922,76.
Ele está em cobertura para vender assim em 28/10/07 57 ações vendidas a 13,11 W-2 renda é 773,49.
No imposto de turbo, entrei nas 57 ações. Ele me pede um lote de valor no qual eu entrei as 68 ações a preço de mercado 13.57 adquiridas em 28/10.
Na Declaração de rendimento tributável, tanto os 922,76 quanto os 773,49 estão listados como rendimentos, mas no imposto de turbo, ele apenas lista 773,49 como receita W-2.
Fiz algo errado.
Obrigado pela informação detalhada. O programa de validade do RSU invalida uma perda (devido a regras de lavagem)? Mais especificamente, diga 100 ações investidas em 10 de janeiro de 2007 como parte de um cronograma de vencimento trimestral. Assim, 100 ações também se venderiam em 10 de abril de 2007. Se eu vender 100 ações adquiridas a partir de 10 de janeiro, com uma perda em 3 de abril, posso obter o ajuste tributário para a perda. Alguma ideia?
Mak & # 8211; Para efeitos de aplicação das regras de venda de lavagem, considere a VENDA de Vendas como compra de ações. No seu exemplo,
1/10/07 compre 100 ações.
03/04/07 vender 100 ações em prejuízo.
10/04/07 compre 100 ações.
Eu diria que a venda em 4/3/07 é uma venda de lavagem porque você comprou o mesmo estoque dentro de 30 dias após a venda. Para obter mais informações sobre a venda de lavagem, consulte Wash Sales 101 on Fairmark.
Previous anon & # 8211; Por favor, leia esta postagem, os comentários e a postagem subsequente para vender para cobrir novamente. Já foi coberto muitas vezes.
A tributação e o relatório de impostos seriam diferentes se a empresa não for pública? E se eu tiver concedido RSU & # 8217; s w / c são totalmente adquiridos, eu preciso pagar imposto de renda sobre isso agora? Quais seriam minhas opções para pagar os impostos, já que eu não posso vender porque a empresa ainda não é pública?
A & amp; amp; F Tax Guy diz.
Excelente artigo! Tenho uma pergunta simples do lado do empregador que não consigo encontrar uma resposta para:
Quando os estoques de ações restritas, o rendimento tributável (incluído na Caixa 1, 3, 5 ...) também pode ser reportado no "Caixa 12 Código V-Renda do exercício de opções de ações não estatutárias?" Ou, não há requisitos de relatório , permitindo que o empregador o inclua na Caixa 14 a seu critério?
Obrigado pela ajuda!
Alguma vez houve uma resposta para a questão de 15 de maio de Tax Guy?
Eu tenho a mesma pergunta exata sobre o relatório W2 do lado dos Empregadores.
Desculpe, eu não tenho qualquer visão sobre o que um empregador deve fazer com relação ao W-2. Eu imagino que os empregadores que emitem RSU têm contadores e advogados fiscais que os aconselham.
TFB & # 8211; Obrigado por fornecer as informações. Tem sido muito útil.
Eu tenho algumas perguntas sobre RSU. Minha esposa possui 1000 RSUs investidas 4 vezes (250 RSU cada) em 2007 em 31/03, 6/31, 9/31 e 31/12. Em cada horário de aquisição, digamos que 100 ações foram vendidas para cobrir o imposto. A corretora informou a venda para cobertura alguns dias após cada data de aquisição em 1099-B. Para a última aquisição, não reportou as vendas para 2007, mas sim em 2008. Devo relatar a venda para cobertura para o último cronograma em 2007 ou no retorno de 2008? Se eu denunciar no retorno de 2008, o número de renda de 2007 de 750 partes não coincide com o relatório da empresa em W-2 de 1000 ações, caso em que ganhei algum reembolso de imposto. Isso é um problema? Preciso relatar as 1000 ações investidas em 2007 mesmo que a última venda tenha ocorrido no início de janeiro de 2008? Todas as respostas são apreciadas.
TaxMan & # 8211; Você ainda informa o rendimento e a retenção de impostos por 1.000 ações em 2007 de acordo com a W-2 emitida pela empresa. Você denuncia a última venda de 100 ações em 2008, mas a venda não deve ter muita conseqüência fiscal (talvez um pequeno ganho ou perda). Veja o post de acompanhamento RSU Sell To Cover Deconstructed.
TFB & # 8211; Eu usei o Turbo Tax Premier e, se eu apenas informasse as três primeiras vendas das 750 ações adquiridas, o Turbo Tax calculou a renda apenas dessas 750 ações e, no final, me perguntou se o cálculo correspondia ao da W -2. Obviamente, não foi compatível porque o W-2 reportou maior renda (do total de 1000 ações). Eu tive que dizer NÃO à pergunta. Como resultado, o Turbo Tax subtraiu a renda das últimas 250 ações da minha receita W-2 de 2007; dando assim algum reembolso adicional. Eu não acho que isso seja correto, mas eu não sei como inserir corretamente a informação de aquisição para as últimas 250 ações. Eu tentei criar outra venda de investimento sem dados de venda e apenas entrei no prêmio de lote com as últimas 250 ações, então o cálculo do imposto Turbo combinado com a figura na W-2. No entanto, a Turbo reclamou no erro verificar se esse investimento está incorreto porque não havia data de venda, preço de venda, etc. Qualquer ajuda com este problema é muito apreciada.
Mahesh postou o TurboTax Premier passo a passo com screenshots nos comentários para esta publicação. Para ser honesto, acho que a orientação extra no TurboTax Premier está tornando mais confuso para você do que ser útil. Eu sugiro que você diga SIM a essa pergunta para que o TurboTax não modifique seu W-2 ou não use a seção RSU completamente e apenas entre 3 vendas de investimento regulares.
leitor agradecido.
Obrigado pela descrição clara e concisa de manipulação de impostos para RSUs. Teve que lidar com isso pela primeira vez este ano, e o seu writeup foi um salvador de vida. Você já ganhou outro leitor aqui.
Agora é 2/09 você pode esclarecer como eu informaria este RSU. Esta é toda a informação diferente que encontro na confirmação de comércio 1099 B.
Data da concessão 18/11/03, Unidades concedidas 500, Data de caducidade 01/12/07, Data Cobertura adquirida de curto 12/3/07. Grant Price $ 0, FMV $ 25135.00, 148 unidades witheld para impostos, unidades restantes 358. Imposto devido 7402.26, pago de imposto 7439.96, taxa $ 35.36. Vendido data 17/11/08, Vendido 200, preço 52.9501 montante 10590.02.
A data 12/12/07 data da data adquirida? é o mesmo que a capa adquirida de curto ou é 12/03/07? Alguma das duas datas é a data adquirida / liberação? O preço de mercado seria o 52.9501 & # 8230? É o preço que eu paguei por ação? Tenho certeza de que as ações foram canceladas 148 e 7439.96 foram pagas em impostos # 8230, mas quando? Em 2007? Ou quando 200 foram vendidos em 17/11/08?
Os termos utilizados pelo corretor diferem um pouco do que o turbotax & # 8230, então é confuso saber qual é o que e onde colocá-lo?
lesley & # 8211; 01/12/07 é a data de aquisição, mas foi um sábado, então você obteve as RSUs no próximo dia útil, 03/12/07. Você pagou o imposto em US $ 7.439,96 em 2007. O restante é coberto na publicação de seguimento & # 8220; RSU Sell To Cover Deconstructed. & # 8221;
Ao arquivar o formulário de imposto de 2007, não percebi no momento em que, se eu recebi rs caducado (12/2/07) que eu tinha que arquivá-lo para 2007. Eu pensei que só tinha que fazer o estoque. Estou apenas aprendendo isso agora b / c vendemos algum RSU 11/08 atrasado e estou investigando isso. Suponho que isso signifique que eu devo arquivar e alterar o retorno de 2007!
Obrigado por esta informação! Minha empresa trocou de oferecer opções de ações para a concessão de RSU & # 8217; s e eu acabei de ter meu primeiro colete de montante fixo esta semana.
A empresa reteve 38% das ações para pagar impostos, portanto, a partir de um prêmio de 500 ações, agora estou com 310.
A minha pergunta é que, uma vez que o meu suporte fiscal não é de 38% (mais como 25% -28%), o dinheiro extra retido me será devolvido no tempo tributário, supondo que eu não devo mais ao govt? Parece-me, que eu estava apenas sobrecarregado por esta bolsa de ações. Mesmo as pessoas mais ricas só são tributadas em 35%. Eu simplesmente não entendo como eles chegaram ao índice de retenção de 38%.
Eu acho que eu lido com as ações remanescentes e como informar qualquer receita ou perda.
JoeBlow & # 8211; A retenção na fonte inclui impostos para federal, estadual e previdência social e Medicare. Ele pode facilmente chegar a 38% se você adicionar 25% de federal, 5% de estado e 7,65% de SS e Medicare. Se o seu suporte de impostos não for alto, você terá a diferença de volta para o estado federal e estadual no ano fiscal.
Sob RSU, recebi 500 ações da minha empresa. Usei a opção de vender todas as ações. A Companhia possuía 200 ações para fins fiscais e vendeu apenas 300 ações na minha conta de corretagem. Meu 1099B mostra 300 ações vendidas e valor de venda. Além disso, o meu W-2 mostra FMV por 500 ações como prêmio e FMV de 200 ações por retenção de impostos. Como o meu 1099-B mostra apenas 300 partes de venda, o que eu relato como base de custo para isso?
Digamos que a empresa vendeu 41 RSU em US $ 50 para cobrir os impostos. Se eu tomar uma perda de capital no Schedule D de outras vendas de ações para ser - $ 5K. Isso significa que minha perda líquida de capital é de -5K + 41 * 50 porque 41 ações foram vendidas a US $ 51 com base no custo 0 para cobrir os impostos? e então eu posso deduzir perda de 3K da renda total.
Naren & # 8211; Não. As 41 ações vendidas têm base de custo ao preço que incluíram como receita no seu W-2. Veja o post de acompanhamento & # 8220; RSU Sell To Cover Deconstructed. & # 8221;
Posso assumir que o Cost Basis é o mesmo que os Dólares Brutos na minha Declaração de História das Transações de Smith Barney?
kate & # 8211; Não. É disso que esta publicação completa é sobre. Por favor, leia tudo na sua totalidade.
Em 2002 e 2003, recebi certificados de estoque da minha empresa após a aquisição de ações restritas. As ações foram posteriormente vendidas, e agora preciso da base de custo para determinar a receita líquida de impostos. Infelizmente, minha empresa gerenciou as transações internamente, e não há registros de corretores onde isso é quebrado. Nos certificados, há datas mostradas no canto inferior esquerdo. É possível que essas sejam as datas de aquisição (que poderiam então ser usadas para fins de base de custo)? A razão pela qual eu perguntei é que um terceiro certificado foi emitido em 2005. Isso foi tratado por um corretor, então eu conheço a data de aquisição e corresponde à data mostrada no canto inferior esquerdo do certificado. Obrigado pela ajuda.
Tom & # 8211; É possível, mas apenas o seu empregador sabe com certeza.
Minha situação de RSU é uma espécie de complicada. Eu tinha 108 ações fornecidas pela minha empresa em março de 2008 que não deveriam se vender completamente por 2 anos. Minha empresa foi comprada no final de 2008 (antes das ações serem adquiridas) e, como parte da compra, a empresa pagou as ações (como se elas fossem totalmente adquiridas) sob a forma de pagamento de cinzas para uma corretora. Eu fui tributado na minha taxa de imposto normal, como se o prêmio fosse um bônus em dinheiro. Os rendimentos e impostos foram incluídos no meu W-2. No entanto, recebi 1099 com todos os montantes de $ 0. Depois de falar com a corretora que lidou com a transação, eles explicaram que as ações nunca foram oficialmente concedidas (desde que a empresa se dissolveu) e que elas só foram usadas por minha empresa para distribuir o equivalente em dinheiro às ações. Então, minha pergunta é: eu trato o dinheiro como um Ativo que gera ganhos de capital (como a venda de ações) e complete a Agenda D ou eu trato isso como renda adicional que já estava incluída no meu W - 2 e não faça mais nada? Eu uso TaxCut para preparar meus impostos.
@Ali & # 8211; Você não faz nada.
Recebi um prêmio RS em 2008 (334 RSUs @ $ 4.30). Estou usando Turbo Tax Deluxe, onde esta informação é relatada, então eu posso pagar o imposto sobre isso?
No que diz respeito à sua postagem de 13 de outubro: sugiro que você diga sim a essa pergunta para que o TurboTax não modifique seu W-2 ou não use a seção RSU completamente e apenas entre 3 vendas de investimento regulares. & # 8221;
Quais são as implicações de dizer SIM ou entrar em vendas regulares de investimento?
Eu corri em uma situação similar onde Turbotax queria corrigir meu R2. Its RSU calculation (that it wanted to use to update my 2008 W2) seemed to add the vesting value for RSUs from 2007 to the vesting value for 2008 because I sold some RSUs during 2008 that vested in 2007. The vesting value for 2007 had already been account for on my 2007 W2.
@J – I said this a few times in the replies already. I think the simplest way to do this is bypassing the TurboTax handholding for RSUs. Use the Spreadsheet-Style Entries. Not all versions have the extra guidance. That guidance really confuses you more than helping you. The Spreadsheet-Style Entries are much simpler and clearer.
Liz Mitchell says.
How is tax computed on RSU’s if the company does not deliver the RSU’s to the employee until 15 days after the vesting date, and does not allow any transactions during this period (ie employee still is restricted from using the RSU’s)? Assume company withholds just enough shares to cover the tax withholding as calculated on the date of vesting (Sell to Cover).
Liz – Did you ask the company in question? I believe the tax is calculated based on the date when the RSUs are not subject to forfeiture (vesting date). When the RSUs are actually delivered to you or when you are able to sell the shares are not relevant.
Linda Dalton says.
That was so well explained–thank you very much!! We have never received RSU’s before, and I had many confusing questions in my mind regarding the tax handling of these shares. Your article explained everything very clearly!!
I have yet another RSU question. I’m doing my taxes. On my W-2 the amount of money I made from the sale of my RSU’s is included with “Wages, Tips & Other Compensation.” My company sold shares for taxes also. How do I avoid double counting this. I’ve included Wages, Tips and Other Compensation on line 7 of the 1040, but then it asks about the schedule D on line 13. If I add those 2 together I’m double counting proceeds from my RSU’s. I’m going crazy. Note, I’m not using Turbo Tax or anything.
How do I determine the cost basis for Restricted Stock Units where a single sale consists of multiple acquisition dates and acquisition prices?
tcmocca – You allocate the proceeds to each lot and treat them separately.
Very helpful information here, thank you. I do have the same question as confused on 7/18/2009 though. If the value of the vested RSU’s is added to my wages for the year they vest, some shares sold automatically to cover taxes and I then later sell the remaining RSU’s, aren’t I being double taxed when I then report the sale on my Schedule D?
Bruce Brumberg says.
With restricted stock units, the biggest sources of confusion arise when companies use automatic share withholding for the taxes. Instead of getting all the shares granted, you just get the net shares.
For example, instead of getting the 1,000 shares in the grant, you only get 750 in your account. You are still taxed on the value of the 1,000 at vesting and need to remember when you eventually sell the 750 shares, that you use the cost basis for this number of shares and not the 1,000 shares.
My company issued me several RSU grants throughout the year. For each one, they sold to cover. The records that came back from the broker has the sell-to-cover transactions arranged in FIFO order, so for example:
Grant 1: 2/1/2009 100 shares, 40 are sold to cover from grant 1 lot.
Grant 2: 3/1/2009 100 shares, 40 are sold to cover from grant 1 lot.
Grant 3: 4/1/2009 100 shares, 40 are sold, 20 from grant 1 & 20 from grant 2.
Grant 4: 5/1/2009 100 shares, 40 are sold to cover from grant 2.
This style of reporting seems to contradict the simplified tax statement you have above, and considerably increases my tax liability over these sales. I have heard a rumor at work that I can ignore the broker reports because the sales were made to obviously cover taxes for each grant, and this is adequate documentation of lot allocations so that I can claim them as:
Grant 1: 2/1/2009 100 shares, 40 are sold to cover from grant 1 lot.
Grant 2: 3/1/2009 100 shares, 40 are sold to cover from grant 2 lot.
Grant 3: 4/1/2009 100 shares, 40 are sold to cover from grant 3 lot.
Grant 4: 5/1/2009 100 shares, 40 are sold to cover from grant 4 lot.
Is this adequate documentation? (I only have email from my employer and the RSU contract that state this.)
When my RSU vested, I used the option to sell all shares. My company used a broker so I’ve just received a 1099B that lists the gross proceeds instead of the net proceeds (as your “RSU sales and tax reporting” post suggests).
Where can I report the broker fees?
I believe I understand everything that you have said. Obrigado por isso. My question is…I sold 847 shares. The shares were acquired on different dates. Do I have to input them in turbo tax by the different acquisition dates? Obrigado novamente.
A portion of my restricted stock vested and my employeer sold shares to pay the taxes. The remaining shared are transferred into my e-trade account. My w-2 included the sold to cover the stock but does not include the value of the remaning stock. Do I need to report the remaining stock as income?
Lisa – You should report each lot separately.
Mike & # 8211; Double check your W-2. It should include the value of the vested shares as income and the value of the sold shares as tax withholding. If you are sure it’s wrong, contact your employer’s payroll department.
Thank you for your information. It is very helpful and easy to understand.
I have 1 question for you on the sample of SELL to COVER.
since you have 59 shares left for future sellable, what happen if you sell 20 shares for your own use out of 59 shares on the same year with 41 shares (sell to cover tax)
how do you report on turbo tax premier (turbo tax suggested I use premier version instead of deluxe)?
I entered as follow:
100 shares vested.
41 shares sell to cover tax (E-trade sold 41 shares on separate transactions - 39 shares and 2 shares on 1099B)
sold additional 20 shares on the same year for extra spending.
I entered 20 shares vested and sold 20 shares but turbo tax increase my income as 20 shares * 50 as my net proceed on W-2.
Thank you very much for the tips. É muito útil.
My situation is a little bit more complicated. I had 500 shares of WYE vested at 42.1 on 4/27/2009, because of acquisition by PFE, I was tendered $33 plus 0.985 shares of PFE valued at $17.66 for each shares of WYE on 10/16/2009. I am still holding PFE shares. How do I report my tax return using Turbo Tax? Thanks in advance for your advice.
Thank you very much for all your tips – I really learnt a lot. Here is my situation:
89 shares vested on 05/27/2007.
24 shares were withheld by my company and sold on the same day for taxes.
65 shares were deposited into my e-trade account.
my company reported both income and taxes on the W2.
my company did not use the broker for the withheld shares.
i did not sell any of these shares in 2007 so, i just reported what was on W2 in 2008 tax year.
i did not report the withheld share sale by my company – am i in violation of something?
i sold the 65 shares on two different days in 2009.
All above examples are about selling all shares in one lot the same they vested.
How do I report this sale in 2018 using turbo tax since they are nearly 3 years later and in multiple sales?
Do I need to report the withheld shares also – if so how since 2 years have past?
Any help will be much appreciated.
Oi. Estou tão confuso. My husband received stock from his employer — they are calling it an award, “Employee Free Shares Plan.” Each year, depending on how business does, they give an award, half in cash, paid through his paycheck, and half in shares of their Company stock. (Not sure if it matters, but it is in pounds converted to USD when we sold shares.) In 2009, he sold his shares that were given to him in 2008 and in 2009 (so I’m supposed to split into long and short-term if I understand correctly from all my reading). He received a 1099-DIV, which was just dividends, so that was easy. Also received a 1099-B. On the 1099’s, the account is referred to as “Restricted Stock Plan Account.” I’m using Turbo Tax Deluxe, and it is asking me questions such as Cost Basis and dates acquired. I’ve also read here and in IRS documents about whether or not it was included on his W2 as income… I have no idea what to do. Any help you can give would be much appreciated. Can’t afford to go to tax consultant right now. Obrigado.
VR – If your company didn’t use a broker and simply gave you fewer shares to begin with, you don’t have to report the withheld shares.
Everyone – When your shares vest, think of it as receiving a cash bonus and buying shares with that bonus. The cash bonus is added to your income on the W-2. Your cost basis in each share is the price per share on the vesting date. When you sell your shares, you report the sale proceeds, your cost basis, and your gain or loss.
Hi TFB – But if the RSU shares turned into shares of a different company, the acquisition company, was the transaction considered as selling of the original shares and then buying of the new acquisition company shares? Or was the transaction simply considered continuing holding of the old shares?
Susan – For your part-stock-part-cash merger, you have to take into consideration the value of the PFE shares you received on the date of the merger. Basically if the value of the PFE shares you received on the merger effective date was greater than your cost basis in your WYE shares, you carry your cost basis into the PFE shares and the cash portion is all capital gains distribution. If the value of the PFE shares was less than your cost basis in WYE shares, the excess cost basis becomes non-taxable return of capital and any additional cash on top of that is a capital gain.
I googled “cash stock merger cost basis” and got this PDF document by Schwab as the first link. There are some examples there. If you read carefully and follow the examples with your own situation, you will get it.
Susan – You may also find this calculator helpful.
Obrigado pelo artigo.
I think i understand it but i want to make sure i got it right and i do have a couple of questions.
Lets say i have 100 rsus which vested on april 2009 and 50 rsu vested on Nov 2009 and the value basis for both are 20$
My company withheld taxes using shares (amt of taxes is mentioned for each of these allotments in etrade)
100 RSUs at value bases 20$ : Taxes withheld by employer were 1000$ and 70 shares were given back to me.
I sold the 70 shares after 15 days in april itself for say 25$, after SEC and brokerage fee i get 1729$
When filling taxes using a software i enter 2 different entries.
1. For the 30 shares, cost and selling price = 1000$, so profit/loss = 0.
2. for the 70 shares is it correct to fill the cost basis as whats mentioned in my W2 ? 100 * 20 = 2000$ and selling price as 1729 ?
Now for the 50 RSU, my company say kept 20 and gave me 30 shares. I’ll file 0 as profit/loss using the taxes withheld.
What do i do for the remaining 30? I have not sold the 30 shares in 2009 and my W2 does include 50 * 20(value basis) = 1000. I did sell them in 2018.
Poo – That’s not correct. Read the article again and also read the follow-up RSU Sell to Cover Deconstructed.
🙁 sorry about not understanding it correctly. I tried reading it again.
Did i get the cost basis incorrect? I think I’m confused.
Is my cost basis 70 * 20? What about the W2 income?
I think i get it now.
The cash bonus of 2000 and the taxes of 1000$ are already accounted for.
So now if i sell at a price greater than 20 i report gain else loss.
for the 70 shares i put the cost basis as 70*20 = 1400 and my selling price as 70*25-20 = 1729 and hence i have a capital gain.
I remember my cost basis as 30*20 and when i file my 2018 taxes i use that amt.
Thanks a lot for this great read!!
Ashley Dunham says.
Esta é uma ótima informação. I have RSUs that vest once a year over the course of four years. My company forces “sell to cover” and does not use a broker (apparently) as I have never received a 1099-B for these transactions.
I just filed my 2009 taxes and was not aware that I should enter anything into Schedule D since I had no short-term gain/loss on the transaction and all income and tax withholding information was already included on my W-2. Since the event creates no unreported tax implications, is this really an issue? Do I need to go back and amend my return to account for the zero gain/loss transaction? Espero que não.
Ashley – If your company doesn’t use a broker and you have zero gain or loss, I think you will be OK with not entering anything.
Ashley Dunham says.
Thanks, TFB. In the future, I will do as you suggest and report the zero gain/loss transaction for sake of completeness. I just wish I had found your site sooner. Great info!
I have a question for ‘Sell to Cover’ case:
Since the company already withholding some of my RSU stock for tax purpose (for example, I have 100 shared vested, but only getting 60 shares, 40 shares are withhold for tax ), why they still report the total vested share value in W2 accounted for tax again?
Would this causing paying *double* tax?
1) the 40 shares value witholding when the stock is vested.
2) the reported RSU value report in W2 as wages.
Please clarify! obrigado!
Anton & # 8211; Think when your company pays you a $1,000 cash bonus and withholds $400 for taxes. What is reported on your W-2 for that bonus? $1,000. It will not cause you to pay *double* tax because the $400 withheld is also reported on W-2. It’s the same concept when your company pays you the bonus in shares instead of in cash.
TFB – Obrigado pela sua explicação! So you mean once the RSU got vested, they will report the value of them as wage in W2, and also at the same time put the withholding tax in W2 (or in my pay stub) as well?
TFB – Never mind, I read again your reply and got the answer! 🙂
Still not sure if I’m getting this right. Employer issued stock award (based on company’s performance prior year) on 3/31/08 and 3/31/09. Employer paid full value at time of award via paycheck and was taxed fully at that time on entire amount. Half of the award was given as cash compensation, and the other half was used to purchase shares of company stock, which was done by a broker, and the company put into an account under our name. Stock was fully vested when given. If I understand you correctly, the cost basis would be the price of stock on the date it was granted (3/31 each year). Let’s say full award was $500, which was fully taxed via paycheck; $250 was “cash” and $250 was used to buy company stock through broker, in our name, fully vested on 3/31. Would cost basis be the $250 value of stock purchased? (If so, would do this for value given each year…) We then sold all shares from 2008 and 2009 in 2009. Would I then take the sale price (split by how many shares given each year times their value at time of sale), minus/plus the cost basis, which would be determined as capital gain or loss?? 1099’s refer to this as Restructed Stock, but it was fully vested when given and the “restricted” part is confusing and doesn’t seem to fit exactly into anything I’ve read. Por favor informar. Obrigado.
On my W2, RSU is shown in box 12c with code V as total amount vested and I received a letter from broker showing the qty of stocks withheld for taxes and broke down in fed, state, soc, and medicare. Is this same as sell to cover and I should show zero gain/loss on sch D? Is RSU same as non-statutory stock option?
deepesh – RSU is not the same as non-statutory stock option. Code V in W-2 box 12c is for non-statutory stock options.
TFB, for some reason you don’t answer my posts — I’m sorry if my questions don’t make sense to you. I’m really trying to understand all of this. I don’t know what to call it (RS, RSU ESO, or whatever, and no one I’ve asked seems to get it). All I know is that it’s referred to as an incentive award of half stock/half cash, and the entire amount shows up on paycheck and is taxed; half the company transfers to a broker who buys company stock in our name, and then it’s up to us what we do with it. The 1099-B says Restriced Stock Plan Account on top. I have read all the definitions of stock options, and none simply say that it is given in this way. They talk about vesting, etc,, but we wouldn’t have received award if we weren’t vested. You mention 3 choices (same day, sell to cover, cash transfer) — we weren’t given a choice so I don’t know how to categorize. It seems like it might be considered same day, but I have no idea. In Turbo Tax Deluxe, it asks questions, and confuses me further. Seems like I shouldn’t call it anything to do with an employee stock option, just treat it as if we bought stock ourselves, use cost basis as amount company gave us (bought for us through broker) to buy their stock, and then whatever date we sell would determine short or long-term sale. In our case, it would include both, and Turbo Tax wants me to split it. If I split it, then the numbers that appear on 1099-B won’t be identical to what I input, so that is really where I’m totally confused. I don’t know how to make numbers match since there are dividends which were reinvested and fees, all of which won’t show on my 1099-B. Please answer my questions. Even if I’m an idiot, please just let me know that you can’t help me because I don’t know enough on subject… obrigado.
P. S. Turbo Tax says to treat as two different sales and split into how many shares were bought (44 first time 81 second time), but they were all sold same time (130.0677 shares) — so if I do that, none will equal amount on 1099-B, if that makes any sense at all. Sorry I’m so confused.
Cathy – I didn’t answer your question because I don’t know enough about it. From what you described, it does not sound like a typical RSU program. So the company gives you a sum of money, let’s call it $10,000. It’s just like a cash bonus. It’s taxed. Where does the tax withholding come from? Presumably from the cash portion? So they send $5,000 to the broker to buy shares and you end up with the shares plus ($5,000 minus tax withholding) in cash? If that’s the case, it has little to do RSU. It’s just straight buy-shares-with-cash.
Your basis in these shares are the total cash you spent on buying the shares plus reinvested dividends. You have to separate the lots into short-term and long-term. List all your purchases and dividend reinvestment by date, # of shares, $$.
xx/xx/xx bought 44 shares with $??
xx/xx/xx bought ?? shares with dividend of $??
xx/xx/xx bought 81 shares with $??
xx/xx/xx sold 130.0677 shares for $?? (1099-B)
Draw a line at the one-year from date-of-sale mark. Allocate your sales proceeds proportionally to the number of shares. Holding period shorter than 1 year is short-term. Longer than 1 year is long term.
If RSU is not same as non-statutory stock option then I don’t know why the RSU amount is shown in box 12c under Code V on my W2. I know it is RSU b/c broker’s statement says that and that is what I got from my company.
What do you show on ur return, non-statutory stock option or RSU? I used RSU sell to cover method on my tax return.
deepesh – I don’t know why your employer included RSU vesting amount in W-2 box 12C. My employer didn’t. The amount is just in box 1. If you are sure it’s RSU, then it is. Whether you have zero gain/loss for your sell-to-cover depends on at what price you sold the shares and whether you paid any commission or fees when you sold.
TFB, I filed before reading the posts. My employer did a sell-to-cover.
There is no 1099B entry for this and the vested amt is on W2.
I didn’t put this on Sch-D because there is no 1099B and I thought employer did the sale.
Would IRS know this and consider this my sale?
Should I be concerned about this now that the tax has already been sent out.
Paul W – In that case don’t worry about it. See comment #88.
RSU question–Sell to Cover– If the company did not sell enough shares to cover the taxes then finds the error what happens now? Do I pay in check or do they deduct my paycheck?
misshippy – The withholding is just an estimate, not any different from the withholding on your salary. If the withholding is insufficient, you will have to make up the difference at tax filing time. You may owe underpayment penalty and interest as well if the withholding is drastically insufficient. If the company wants to withhold more now, ask them how they will do it. They will likely deduct your paycheck.
Maybe a dumb question:
Jan 1, 2018 — granted RSU with 1-year vesting (no purchase price)
Jan 1, 2018 — become vested and I believe 2018 W-2 will show value of RSU.
When I go to file taxes in 2018, I think I’ll be taxed at short-term rate? Does it matter whether I sell in 2018 (within 1 year) or not? If I hold on to them for at least 1 year, how do I report the sale so that I get taxed at long-term rate? Would I then get a rebate if witholding was done at short-term rate?
Follow-up question — assuming I have to pay taxes at short-term rate, if I donate the stock to a 501(c), do I get to effectively avoid the tax?
I had 666 shares vest on March 1st 2009. 166 were sold thru employer to cover tax withholding. I am going to sell the remaing 500 shareson March 2, 2018.
Beyond LT cap gains, am I subject to any additional taxes?
Hi TFB, thanks for this post. I have a question about the seemingly rare “Cash Transfer” opção.
In May 2009 my shares vested. I kept all of them and did a “cash transfer” by sending a check for the tax amount directly to my employer. A month later I sold all the shares for a very small gain. I did not include anything on my 2009 tax return except the totals from my W-2s.
Last month the IRS sent me a bill for the tax on the “cash bonus” of the vested RSUs. Apparently they became aware of them through the broker. I’ve already paid this amount (to my employer) but the IRS doesn’t seem to be aware of it, and thinks I still owe. I believe I do owe a negligible amount for capital gains on the ultimate sale of the stock, but I’ve already paid the taxes for the “cash bonus”.
Now that I need to clear this up, my question is, how should I have reported the cash transfer on my return in the first place?
@Zack – Nothing when you did the cash transfer, just like when you buy stocks you don’t report anything. But when you sold stocks, you should fill out a schedule D with your sales proceed and your cost basis. In this case your cost basis is the fair market value of the shares at the time of vesting. Did you fill out Schedule D in the year of the sale?
@Zack – Was the tax payment/withholding you gave to your employer reported on W-2 from the employer?
@Kenny K – According to my employer it’s rolled into the total taxes withheld, but the specific amount I paid (transferred) to the employer is not broken out on the W-2.
Chuck White says.
Great article, Quick Question-
Sell to Cover option.
The sale for tax is accounted for on my W-2. When I sell the remaining shares do I use choose “taxes were withheld for this sale” in turbo tax?
TFB, I have an RSR question. I received 67 shares of Restricted Stock Rights on 3/19/2018 at 53.90 per share. Taxes were paid with stock, so I received 40 net shares. I sold the shares on 3/24/2018 for 55.78 per share for a net profit of $41.20 before $34 in fees. I am using TurboTax Deluxe. Do I need to enter a Stock sale in Cap Gain/Loss? If yes, what would I list as my purchase price? Would this be the value of the stock upon grant to me, or total value prior to the 27 share original tax?
Great article, and I think I got it all.
But one clarification would be helpful that I think is covered in the posts but wanted to ensure. The condition is that a (1) restricted stock grant had a fair market value the same price as the taxable compensation, (2) appropriate taxes were deducted at time, and (3) there is no broker or other fee.
My question, in this type of case, is there any purpose or requirement to include such on a Schedule D since there are no tax implications that warrant filing a Schedule D?
Thanks for the article TFB. I sold several RSU’s last year, some for long term gains and some for short term gains. The article really clears up how to report this on my taxes. I was audited a couple of years ago because the company only showed the total value of the sale, not the cost basis, so it made it look like a lot more money.
I have a question about reporting the sale of options. As an example, one of my awards was for 150 shares at $16.88. I exercised and sold in December at $24.20. So, I have a short term gain of $1,098. However, taxes were withheld at the time of the sale, and the gain shows up on my W2. If I show the sale and cost basis on my tax form, it’s going to look like I made this money 2x. I assume I have to report it, but I’m not sure how. Obrigado.
So my husband got a job and his employer gave him, apparently, some of these. so I get a letter in the mail saying $$ are reported on the w2 yadda yadda. TaxCut / H&R Block doesn’t even have a “help” search result when putting in RSU or the word restricted. The letter only says 1099. It references an account I know nothing about (account holding company I presume). This has got to be the greatest stock corporate/federal scam ever. God Forbid they just give people cost of living increases, no, they give them restricted stocks with no choices and pretend it’s income on a W2. Does that mean that they’ve done away with the 401k Roth post tax funding rules? What if the restricted stock $$ on the W2 push someone into a bracket where they can not fully fund their post tax IRA? Scam Scam Scam Scam, Scamity Scam!
I sold lots of 105.847 and 99.153 shares of stock for gross proceeds of $6,057.75 and net proceeds of $6,018.15 on 2/5/10 for long term losses. These lots were acquired with a basis of $6,367.21 and $6,627.75 respectively. Then on 2/23, I had two lots of 55 and 175 shares of RSU’s of the same stock vest with values of $1,816.65 and $5,780.25 respectively. On 2/26 my company sold 24 and 70 shares for $774.58 and $2,277.52 respectively to cover the RSU’s taxes. Is it a wash sale and how do I handle it, if it is? What are the bases for the 24 and 70 shares sold and the basis for the remaining 31 and 105 shares? What do I put into Quicken this year?
@Stan – The case you described is called “net issuance.” I will add it to the post shortly. In net issuance, you never see the sale. You were promised 100 shares but you only receive 60 shares upon vesting. If you do an entry on Schedule D, it’s going to be zero anyway. So you don’t have to do anything. Just make a note of the price for your 60 shares. That’s your basis. When you sell your 60 shares later, the price difference will be your capital gain or loss.
Getting involved with my taxes already and was reading your comments from this and prior years. My only comment about RSU and Turbo Tax is that TurboTax2018 does fine when you have vested and sold in the same year. It does not recognize a vested stock that you sell years later that you were taxed on your w2 for the “gift” or the “price” that day. The difference of course is capital gains but it wants to treat it as compensation. If you have been holding onto shares of a stock given to you years ago… you don’t want to be taxed twice. You think you can simply treat the sale as a regular stock sale and it prevents you from doing so because it asks you how you obtained the stock. The way around this is to say the “price” of the stock was what the price was the day you were released the stock. That was the price of couse that was used to compute your earnings which appeared in your w2 years ago..
Isso faz sentido? Otherwise TurboTax2018 wants to treat the cost basis as compensation and you were already taxed on that .. years ago…
Question that I may be overthinking…In early 2018 my husband was awarded a stock equity grant of 1,000 shares to be vested over the next 4 years. In June 2018, his company was sold and all unvested shares were vested and paid in cash through his employer. The income from the sale of the stock was reported on his W2, but we did not recieve a 1099 and one was not produced. Do we just report this as W2 income when completing our taxes? Do we have to complete a schedule D?
@Jen – Just report the W-2 income. He didn’t get any shares.
I was awarded 500 RSU share this year, but my company withheld 125 shares to cover the tax situation. Do I have to claim the other 375 shares on Schedule D or worry about AMT ?
TFB, thank you for this article. My shares were taxed as described in the Net Issuance section above. The W2 that my company sent included the income for the total shares issued in box 1, but the shares withheld for taxes were not included in boxes 2,4,or 6. Am I right in thinking that my W2 in inaccurate and I should ask for an amended document from my employer?
Thank you in advance for your time and response.
@Harold – How do you know they are not included in boxes 2, 4, and 6? Get all your paystubs during the year. You may find that one of them has a higher withholding amount. Or you may see the YTD number jumped magically as if you had a hidden paycheck.
I like the deconstructed portfolio example, very eloquent. However, you didn’t directly answer whether this is a double taxation. It appears to be, since the bonus portion is taxed on the W-2 (which is why the company does the sell to cover with the stock, to fund the tax from this bonus) and then separately your gain on sale of your investment is taxed on the Sched D.
All in all, the company must fund the tax associated with the bonus they pay you by selling to cover a portion of the shares the award you, then you must pay tax on the ordinary income of the “bonus” and the gain on sale of the share grant. That feels like triple taxation to me! Oh well, at least it’s a bonus 🙂
TFB – I should have included an explanation for that. I left the firm in 2008 and had no income from them other than the vested RSU shares. So, the RSU amounts were the only ones on the W2. The company tells me that the tax was reported on a UK equivalent (I was an expat in London at the time the RSUs were granted, but was back in the US when they vested). They are looking into it.
Obrigado por seus comentários.
If you see the difference between the market price and the option price reported on your W2 as a code V in box 12. DOES THAT MEAN THE $406 (TAXES) was added to my federal withholding on my W2? I did not get a 1099B for this sale transaction but see the $406 as a tax withheld for this sale on my YTD summary.
hi, my husband exercised some stocks that he received from his employer..
bought for : $25.42.
when we sold stock, the broker cut federal taxe, fica tax1, fica tax2 and state tax and we received net amount for $933.90..also $1596 was reported on my husband’s W2 form under line 12. my question is do we have to pay taxes on $933.90 again. if not, how and where do i put that information when i file taxes. i am using taxslayer and its not working.. please help.
also, do we have to fill out schedule D for $933.90??
I received and sold RSUs this year. My W-2 includes the income received, but did not check off box 12c – “V” on the W-2. I also received a 1099-B from ComputerShare where the shares were sold. I’m not clear on how to report this since I already paid the taxes on it. I’m using TurboTax.
Very useful and clearly written. Bravo!
Excelente informação. Muito obrigado. Want to make sure I am calculating mine right in Turbo Tax.
Received RSU’s Jan/2009.
Jan/2018, 112 vested at $37.66.
44 held for taxes.
May 2018, sold remaining 68 at 47.22.
1099B shows $3170 (proceeds minus commission)
So in TurboTax I have:
$3170 as net proceeds.
$4217 as cost basis (112 x $37.66, also shows this amount on W2)
Date Acquired (not sure if I put date I received award or date vested. Maybe it doesnt make a differnce)
With this info, I am showing a loss of $1047. Is that right. Even though stock went up approx $10 per share? Or is this how it works because of the taxes taken out? Any help would be appreciated to make sure I am entering this right.
One other thing, do I check the box that say taxes were withheld (not common)?
@Tyler – You know something is wrong when the stock went up and you show a loss. You sold 68 shares. You can only use the basis for those 68 shares ($37.66 * 68 = ?), not 112 shares. Date acquired is the date vested. And don’t check that box.
Thanks TFB. I was thinking the exact same thing. So that makes sense to only take into account the 68. Thanks again for taking the time to respond. I am truly impressed.
What is the tax implication for the tax withholding on stock compensation paid by the employer? The stock compensation amount e. g. $54K is already reported in box 1 on W2 as compensation. Agradeço antecipadamente por sua ajuda.
Great page. Obrigado por isso.
TFB, if there is no 1099-B for the sale, how is a “sell to cover” different from a “net issuance”? My company ‘traded’ the shares at the release to cover withholding (bought them back without a broker) and gave me no 1099-B. It sounds a lot like the “net issuance” where I do nothing on Schedule D. But in the case of #13 where shares were “withheld” (I am not sure what that means), you advised filing a Schedule D.
Even if I think I have a “net issuance” should I treat as “sell to cover” and put a 0-gain sale on my Schedule D? I’m not sure what the IRS would think of reporting a sale that was not reported to them….
@Jeremy – I used to recommend doing a zero entry for completeness. That way all shares are accounted for. I now believe not doing anything will be OK too and it’s simpler that way. I added net issuance as a special case for sell-to-cover: no broker, no 1099-B, price is exactly the same as the price used for vesting. I’ve done it both ways in different years on my own tax returns: with a zero gain/loss entry; and no entry at all for the shares used for tax withholding. IRS accepted my returns without any issues.
@Achiu – The withholding is also included in W-2, in boxes 2, 4, and 6. If the withholding isn’t enough, you will pay extra on your tax return based on the Box 1 number and your other income and deductions. If the withholding is too much, you get the difference back.
Ok very confused but I am sure you answered above. i am trying to do my taxes. I sold some shares of restricted stock when it vested. My employer withheld shares to cover taxes so instead of receiving 50 shares that I sold I actually received money for 35. I pulled a 1099 off the smith Barney web site which showed the amount received (the 35) and said 0 for taxes paid. Since my employer did that is that reflected in my over-all W-2 as income with taxes already deducted? Am I making sense?
Thanks TFB… greatest blog I have come across explaining RSU’s.
Eu tenho uma pergunta. just wanted to confirm that what i doing is correct.
I have 167 shares vested (in 3/01/2008). Employer sells 72 shares for tax purposes so I have 95 remaining.
I sold the remaining 95 on 10/26/2018.
So in the capital gain while filing taxes I just mention.
date sold: 10/26/2018.
sales proceeds: 2,736.00 (the stock value 28.8001 x 95 stocks)
date acquired: 03/01/2008 (vest date)
Cost or other basis: 2,504.2 (the stock value at vesting 26.36 x 95 stocks)
capital gain: $232.00 ( 2,736.00-2,504)
is this right? do I need to do something else?
@Peter – Isso é certo. Nothing else.
I have a location issue with my RSUs. I was awarded them in 2008 in the UK, then left the co.; this year I sold the vested shares on vesting date (net issuance). I have a 1099B for the net proceeds, but no W2 for the withheld shares, since I now live in the US and work for a different company.
Can I report the withheld shares by ticking the requisite box on TurboTax and entering it manually? The result is a full refund, because I only worked for 3 months last year. Seems to good to be true …
kim nguyen says.
Received 40 share RSU’s 02/2006.
02/2018 sold remaining 20 share at 24.87.
Gain 498.20 reported to W2.
1) Enter vesting (or release) information.
2) Total shares vested/Released.
3) Share withheld (traded) to pay taxed.
My company granted me a couple of bonuses as RSUs over the past 5 years. The company merged with another in mid-2018 and the shares were accelerated to vesting and the proceeds included in a separate paycheck. The proceeds and withholding show up in my W-2. I also got a 1099-B from the broker with:
Box 2: (amount of proceeds)
Box 4: (Income Tax Withheld)
I’m guessing from previous responses that I might be able to not file a Schedule D. I’m just not sure what the IRS will do with the 1099-B info submitted by the broker.
If you got a 1099-B, then I would think you better file a Schedule D.
My scenario is kinda similar to Peter(144)…..Do you have to enter the capital gain/loss info in Schedule D?…..Does it need to be entered in the same spreadsheet where one enters the stock trades Buy/Sell info?.If not where exactly do I have to enter it.
@Riz – Yes, on Schedule D. Same as other trades.
I have a same day cash sale RSU. Turbo Tax Premier is subtracting the value of shares with held to pay taxes from my cost basis (in my case reported W2 income).
Details (Same Day Cash Sale)
RSU Grant: 166 Shares vested on 8/17/09 @ $10.86.
Shares held for taxes: 71.
W2 Income: 166 * $10.86 = $1802.76.
I assume my cost basis is $1802.76, ie what is on my W2.
However, TT is saying my cost basis is $1031.70, or $1802.76 – (71*$10.86).
So it looks like TT (using easy guide) is subtracting the value of taxes paid (ie 71 shares @ $10.86) from my total cost basis. Isso é correto? From all of the examples, I should not have to subtract this and my cost basis should just be the W2 income reported.
In reference to my question(150), is there a specific/exclusive column on the W-2 where witholding taxes are exclusively reported/specified? If not which column has that info?
Desde já, obrigado.
@G – See comment #137.
@Riz – No specific columns. They are lumped together with other withholding from your salary: federal, state, FICA.
To all who want me to work their TurboTax issues: I will do my best to help you, but I can’t be doing free tech support for TurboTax. If you need one-on-one help, deposit what you think the help is worth in my tip jar.
Thanks TFB, that post made it clear. My cost basis is only on the 95 shares sold, or 95 * $10.86 = $1031.70, exactly what TT reports.
Now I just have to figure out some non-qual Stock Appreciation Rights (SARs). I wish you had a blog on that 🙂
Ótimo artigo! Got a few questions though.
Release history for 12-SEP-2018 shows “Released Quantity”=104 and “Net shares released”=62 at FMV 10.8150 Per share.
The W-2 Box-12 says V-Nonstatutory stock options 1,124.76 (confirmed w/ payroll this is for RSU)
Also recd 1099-B from Broker, showing trade date 13-SEP-2018, shares sold 42 at Price 11.1267 and Gross proceeds (less fee) of $442.31.
My confusion is regd Cost Basis. Should it be 1,124.76 (as in W-2) or $454.23 (42*10.8150) ?
Does the below look correct (if I used 42 * 10.8150 as Cost Basis) for Sch-D?
Shares Sold Net Proceeds Sale Date Cost Basis Gain/Loss.
42 442.31 9/13/2018 454.23 -11.92.
I don’t see any response to TaxBozo’s question on 2/25/10 about the situation where the shares that were sold to cover are allocated with a cost basis FIFO, not from the lot that just vested.
To complicate matters further, I just followed the method outlined on this site last year, when I had a lot fewer/less complicated RSU transactions. So now if I switch to FIFO, everything’s all messed up. (Of course, if I don’t, then I’d have to go through and calculate what lots the RSUs I sold myself came from and all my records would conflict with my brokerage’s records.)
I am surprised more people haven’t encountered this and would be interested in any insight you have.
(My current plan is to correct everything to FIFO now and not think about last year unless I get audited.)
My question relates to wash sale rules. On 2/20/09 we sold 504 shares of stock at a loss (RSU’s from 2006) and on 3/4/09 we sold 382 shares of stock (RSU’s from 2007) also at a loss. However, 547 new shares were vested through the RSU program on 2/15/09 and 36 shares on 3/6/09. I did not recognize the losses in 2009, because I thought the wash sale rules disallowed them. Minhas perguntas são:
1)Which stock basis is increased due to the disallowed losses? Do I add it all to the 547 shares received 2/15/09 (chronological) or do I prorate between the 547 and the 36? Does it matter that the number of shares I acquired is less than the number of shares I sold at a loss?
2)On 11/22/10, we sold the 547 shares acquired 2/15/09. The broker statement shows a gain, because it does not reflect an increased basis due to the wash sale disallowed loss. When Turbo Tax asks me for the basis of the shares I sold, do I just enter the basis including the disallowed loss, even though that won’t agree to the 1099 from the broker?
3)If I increase the basis of the 547 shares for the disallowed loss, it will make the 11/22/10 sale of stock a loss rather than a gain. I got new shares vested 11/15/10. So under the wash sale rules, would I not recognize the loss on the 11/22/10 sale, but increase the basis of the stock received 11/15/10?
Qualquer ajuda seria apreciada. Is there separate software just to handle wash sales, because Turbo Tax Deluxe doesn’t seem to give extensive guidance on the subject.
Hello, great post and comments I should say firstly.
I wanted to ask about my situation which seems a bit more peculiar:
I had a grant of 50 RSUs on 05/06/2008. They vested on 05/06/2009. At that time they were automatically “sold to cover”, going down to 28 (22 sold). I saw the withheld-for-tax money, as well as the “earnings” (FMV*50) show up on my company’s gross/net pay 2009 report (however it’s not clear if this money is in the 2009 W-2 – arggg, why is it all lumped together? it’s so easy to print a breakdown in this day and age of computers…). However, I didn’t touch said 28 RSUs until 12/31/2018, at which time I sold them, and by which time I had left the company (after vest).
How do I calculate the cost basis on the 2018 return? Do I have to report that 22*FMV was withheld for taxes again for 2018? I’m guessing no.
And another question: as I was going through my 2009 W-2, my calculations showed that it (the W-2) reported less than I got in 2009 (it seems to not include the last lump payment which included unused vacation time). É possível? I quadruple-checked my math (and I’m good with math). I was never sent an updated W-2. It’s a big company, I don’t think they’d make mistakes on their W-2s…
Thanks in advance and keep up the good work!
A quick follow up to my original question:
I guess these shares are NOT RSUs anymore after the vesting date. Therefore I would not enter them into my tax software as RSUs, but as normal stocks. Isso faz sentido?
As for the cost basis, someone explained it like this:
& # 8221; let’s say you were awarded 150 shares valued at $20/sh.
& # 8211; your company reports $3000 of income for you (in addition to salary, bonuses, etc.)
& # 8211; the stock program administrator grabbed 60 of the shares to pay taxes assessed at a fairly high rate, so your company has also reported $1200 of federal withholding, social security, medicare, state tax, etc.)
& # 8211; You now own 90 shares that “cost” $3000, so your basis is.
$32/sh. which was certainly more than market value on purchase date since RSUs are issues at fair market value or $20.
& # 8211; if you haven’t sold any shares, TT shouldn’t report anything.
& # 8211; If you sold some of the shares for more than $32, then you’d have a capital gain to report, a nice thing in this day and age, but unlikely in 2008 when most stocks went down…not up by 40%
& # 8211; if you sold shares for less than $32, you might generate a capital loss.”
Is it correct to assume the basis is:
A) 90 * $3000/90 = $3000.
I would say B, but the comment above hints to A (“basis is.
$32/sh. which was certainly more than market value on purchase date”, FMV=$20).
Desde já, obrigado.
@TFB-Reader – Answer is B. Cost basis is tied to the number of shares. Your cost basis for the 150 shares is $3,000. $1,200 of that went with the 60 shares to the company. They go together. You are left with $1,800 of basis and 90 shares.
Great information about RSUs and the tax treatment thereof! My question stems from the way the value of the stock I received is reported on my W-2. The value of the shares I received (gross value before “sell to cover”) was reported as part of my “gross pay” and not part of my reported wages.
I think I need to add the total value of my RSUs into my reported wages. Can you verify?
Desde já, obrigado.
@Mark – Do you mean W-2 Box 1 when you say “reported wages”? Yes the value of vested RSUs should be in Box 1. However, the Box 1 number is after 401k and other pretax deductions. It may give you the impression it didn’t include the RSUs but the difference between Box 1 and gross pay is really 401k and other pretax deductions, not the value of RSUs.
TFB-thanks for your response.
Você está certo! In my case the value of my RSUs equals my 401k contributions +life insurance premiums+ Sec. 125 contributions almost to the penny:)
Been reading through all of your articles and comments … I am on the Employer side, small company, trying to figure out how to represent all of this in our books and on the Employee’s W-2s. We use Intuit payroll so I’ll have to set up something there but can you walk me through conceptually?
We granted restricted stock 1,000 shares several years ago but they will vest this year @ $10/share.
I report $10,000 extra income on W-2.
Additional tax burden created will include Fed/State/SS/Med so, “sale to cover” would include those totals, right?
@LAB – Sorry I have zero experience on the employer side. From my observation as an employee, sell-to-cover includes necessary amount for federal, state, SS, Medicare, and state-mandated disability program (if your state has one), just like a one-time cash bonus except no deduction for 401k contributions.
Still a little confused. My employer issues RSUs to me and seems to use the “Net Issuance” method to cover the taxes. I can infer this because my 1099-B does not have anything related to the RSUs. Every April, I get a chunk of RSUs, let’s say 300. About 1/3 are sold to cover taxes, say 100 shares. So to me, I am just getting issued 200 shares of stock. The value of 300 shares is reported as income, and the value of 100 shares is withheld as tax. OK all that is fine. Now within 30 days of the RSU issue, let’s say I sell a chunk of totally unrelated shares in the same company, at a loss. Let’s say I sell 200 shares at $10, and $5 of that is loss, so $1000 of loss. Let’s say the RSUs that were issued to me were at $10, or a value of $2000. According to IRS Pub550, wash rules are incurred when I “Acquire substantially identical stock or securities in a fully taxable trade” within 30 days of the sale. Does my company’s issuance of RSUs to me count as the “acquire” statement? If so, do wash rules apply? If so, when do I get to claim the loss?
In reviewing a paycheck from a client, it shows Restricted Stock gross income as $371,000. An after-tax deduction called “Restricted Stock Offset” equals $235,000. Does this $235k represent the tax w/held on the transaction? Not clear how it figures into the calculation.
@Kbiz – I will tell you if you share some of the money your client pays you. Charging your client money for an answer you get from me for free isn’t fair.
I am not charging the client for anything – not preparing a tax return nor providing a fee for service. Was just looking for clarification…no problem for not answering…
And, thanks, you do have an informational site…
Thank you very much for your informative article. I just have one question. How does the IRS value restricted stock paid to non-employees? i was just paid in restricted stock, and im not sure how much i need to pay tax on. The amount the stock was when recieved, or what the stock is at now. (even though at this point i cant sell it)
Thanks for your informative article. I have a question (apologies in advance if it’s super basic). In relation to RSUs, when are shares deducted from the number of available shares — are the shares deducted when the RSU is granted, or at the time the RSU vests?
Great website, very helpful. I’ve found myself in the camp of needing to answer an IRS audit due to not properly filing a Schedule D for a sale. Quick cost basis question for RSUs (in a net issuance situation. Your guidance indicates using the closing price of the stock on the day it vests for the cost basis of the remaining shares after net issuance. I have a date of 5/17, and using the closing price and number of shares, calculate a cost basis of 3152.50. On the vest date, the company issued a paycheck stub, with gross amount, taxes paid, and a net income amount reported as “RSU” (also included in W-2 income), which is different than my calculated cost basis. Must I use the “RSU” income amount as cost basis, or is my calculated cost basis using closing price (which is slightly higher) fine?
@CDS – If you have the paperwork from your employer, use your employer’s.
I determined the reason for the difference, and I’m not sure the company’s tax treatment of reported income is correct. The company sells whole shares, and sells fewer than needed, creating a tax “liablility”. For instance, for one RSU vest event, they sold two shares (out of 6), getting $96 in proceeds, with a tax liability of $102. They then reduce the reported W-2 RSU income by the $6 difference, so instead of reporting income/cost basis as (remaining shares * sales price), they are reporting (remaining shares * sales price) – “tax liability”. I can’t quite figure out what’s going on with this $6 tax liability, but I don’t think it belongs in the cost basis of the remaining shares.
My broker website (MorganStanley SmithBarney) shows a $4000 cost basis for 50 restricted shares that I sold to cover. These restricted shares are part of an employee restricted share award. Based on proceeds of about $1500 and the cost basis of $4000, TurboTax Deluxe reported a Gain/(Loss) of -2500. I decided to upgrade to Turbotax Premium for the upgraded stock reporting features and it reports the Cost Basis as zero. When I click on the explanation, I get the following “Your cost basis in stock options you receive through a restricted stock grant is the amount you paid for the stock (this is often zero) plus the amount of compensation income you receive”. Why the discrepancy?
Neither makes sense. What was the price *per share* at the time of vesting and at the time you sold those 50 shares?
There is a “FMV (per share)” value of 30.53 and a “Sale Price” of 30.9571. I think you are asking for the FMV price, correct? And when you say “at the time of vesting”, it is not clear to me when it vested, but I think it was the “release date”. MorganStanley reports a Release History table with “shares vested pending release” and shows “release dates”. So on the release date of April 2018, 50 shares were sold. When I click details, it tells me that the FMV (per share) was 30.53 and “sale price” was 30.9571.
I do see now that the $4000 cost basis was for all of the shares that were released, not just the 50 I sold. So, in turbotax, I chose a basic stock sale (ignoring the restricted stock sale option) and indicated the net proceeds(sale proceeds – fees/commissions) from my 1099-B and the cost basis (50*30.53). The difference between the 2 came out to a loss of $10.
According to a turbotax agent, the restricted stock option in turbotax is for stocks that have not yet vested. To me this seems real confusing.
@John – Yes, vesting and release are the same: when the shares vest, they are released to you. You did it right this time. When you sell the remaining shares, use $30.53 per share as your cost basis.
Great article on RSU’s.
Not sure if this was answered above..
My question is, if we did not get a 1099-B from my broker, can we assume that it is “Net issuance” and not a “Sell to Cover”?
The amount (total value of the vested RSU’s) is included in my W2 and the remaining shares deposited with my broker.
thanks for the help.
SGK – Yes, assume net issuance if you don’t get a 1099-B.
Man this is confusing. On net issuance, I can’t figure out if my cost basis should be calculated by multiplying the FMV at the time of vesting by the number of shares released, or by the number of shares withheld to cover taxes, or by the number of shares I ended up actually receiving.
If I enter my RSU’s sold to cover taxes as RSUs in TT, I end up paying a heck of a lot more tax than if I call them a stock sale. Why would this be? I haven’t completed the TT return – just finished up the 1099B income section…perhaps if I continue with TT this difference in tax will be negated by other entries later on that affect the RSUs? Note: My 1099B does not indicate RSUs anywhere on it so technically I think I can call it a stock sale if that results in lower taxes. Also note that the RSUs that vested were included in line 1 of my W2 but not noted elsewhere as vested RSUs. I’m just trying to figure out why calling them “stock sale” instead of “RSUs” results in much lower taxes? Am I doing something wrong?
Donna – Just use stock sale. TurboTax is confusing you in the RSU section.
same question as Donna.
RSU vested, tax withhold and received deducted shares, income and tax reported on w-2, no 1099-B reporting for them. I understand there is no gain/loss report, as i didn’t sell them.
But, do i need to report this transaction in my return?
taxact doesn’t have anything for it?
Rohit – If it’s net issuance (no 1099-B), you don’t do anything until you sell. When you sell, use the price per share used to calculate your income on W-2 as your cost basis.
TFB, Can you clarify how to calculate the Cost Basis for Net Issuance? I have read and re-read this post, but I can’t find an explanation or an example. Sorry, if I missed it…staring at Tax forms for extended periods of time is numbing my brain.
oldiemotors – Quoting from the post under Net Issuance.
“You don’t have to report anything for the vesting event. Use the numbers on your W-2 as-is.
Make a note of the closing price on the vesting date. You have to remember the date and this number until you sell the remaining shares. In our example, that’s $50 per share. If you sell the 60 shares for more than $50 per share, you will have a capital gain. If you sell them for less, you will have a capital loss. You report the capital gain or loss in the year you sell the remaining shares.”
The $50 per share in the example is your cost basis.
TFB, thanks for the reply. I realize that $50 is the costs basis for the stock price, but TurboTax asks me to enter the costs basis for my sale. Would I enter 100x$50=$5000 as my cost basis, or 60x$50=$3000?
oldiemotors – $50 times however many shares you sold. If you sold 30 shares out of 60 shares you have, it’s $50 * 30 = $1,500. If you sold 60, it’s $50 * 60 = $3,000.
TFB – That is what I needed to know. Someone in my company’s Payroll department told me that my cost basis was based on the total shares granted (in your example that would be 100 shares). That didn’t sound right to me. Obrigado.
Jim Wilson says.
Hi TFB. The RSU post was very helpful and got a significant issue squared away for me. Obrigado. Have a hybrid of that issue also. Have an noncovered sale of 12xx shares. The shares came from 2 ESPP lots purchased in May and June 2007, and an RSU lot released in October 2007. Company was bought in late October 2007, and the shares were converted to 6xx shares of new company. Stock then splits 2:1, giving us the 12xx shares that were then sold in Jan 2018. New 1099s don’t give basis, as we all know.
Question is how to figure basis.
Do I trace each lot individually (I have basis from each individual purchase) from purchase through merger and split, or should I calculate the basis for the entire lot after the merger and then split? Muito obrigado.
Jim Wilson – Each lot individually. Prorate the commission on the sale.
Slight twist on RSU issue… I was granted RSU shares and they vested 2018.
30% were sold by my company to cover taxes. The total value of the vested shares appears on my W2 as “income” in box 1. When I use TT and report the vested shares and sale of the shares to cover taxes, I end up with a refund of $1000. If, instead, I call them a stock sale when entering the info into TT, my refund is $4000. I checked every document in my return and I can’t say for sure, but it appears that my carryover stock losses from prior years allow the gain from the RSU sale to be offset resulting in no tax due – but if I call them an RSU using TT, then there is no offset, so I pay a lot more tax. This doesn’t seem fair. And it may be an issue with how TT handles the RSUs? Shouldn’t you be able to offset any gain (whether it’s an RSU or not) to be offset by losses? Can I legally call the sale of the RSU’s a stock sale?
Thanks for all your comments. This site has saved my sanity.
Donna – See my reply on March 17. Just use stock sale. TurboTax is confusing you in the RSU section.
Great info & I have learned MUCH from reading so many of these posts/replies about RSUs, but I did not see the situation I have. CO issued RSU & sold some to cover taxes, but a little extra $$ was due to cover the taxes (<mkt value of 1 share) so $$ was due to the CO & was deducted from paycheck. Should the extra $$ paid for taxes be attached to the cost basis of the shares sold to cover OR can I add it to the cost basis of the remaining shares issued that are availble to sell?
Thank you so much for clarifying this confusing topic!
Belinda – The extra bit of $$ you paid out of pocket has nothing to do with the cost basis of either the shares sold or the shares remaining. Think of it as just extra withholding from your regular paycheck. You will get it back as tax refund if it turns out you paid too much tax.
Thank you so much for the SPEEDY answer!
Thanks for detailed explanation . Lets say company granted 400 RSU to be vested over 4 years .
In 1st Year I got 100 shares out of which I see only 60 (sellable ) shares in the trading account and remaining 40 were sold for covering taxes .
If my tax bracket is at 20%. However for this RSU’s I have payed at 40% . when I file taxes for that year I should get the 20 shares price refunded to me when I file taxes. How will I claim the 20 shares amount in refund.
Does the RSU’s mean that they are to be taxed at 40% .
To add further I have not sold any RSU’ s in that tax year and I have not received any tax document from my brokerage account.
Siva – Nothing special to do. The 40 shares worth of withholding is already reflected on your W-2. If you paid too much, you will naturally get the difference back. Think when you get a cash bonus, which the employer is required to withhold at a higher rate. If it turns out to be too high, you get the difference back when you file your taxes.
Hi TFB – I was issued 709 RSU shares that vested 6/1/11. From the 709 shares, 264 share were sold to cover taxes. I sold the remaining 445 (3 lots) on the same day,6/6/11. In Box 1 on my W2, I see an RSU entry of $13,825 as taxable income. My 1099 shows 445 RSUs sold at a gro proceed of about $8200. When I enter the RSU information into Turbo Tax (separating everything by lots) everything seems fine, until I get to the “Employee Stock Plan Results” page where TT comes up with $6932 and ask me if that number appears in Box 1 of the W2. My W2 shows $13,825…or twice what TT calculated. If i enter the actual amount that appears on my W2, TT throws an error stating that I can’t post anything more than their calculation.
Have you encountered this scenario? It’s confusing to enter everything it asks for and then not have a clue how they came up with the $6932 number.
I am US citizen, working in India and earn wages in India. My company has given me RSU’s (listed in US) and they use “Sell to Cover” option at the time of vesting. Since I do not receive any wages in US I do not have a W-2. I did not receive a 1099 from the brokerage firm as well. But I did receive the RSU release and the tax withholding details. It indicates that there is a 30.9% of tax withholding for Local tax. Now I am not sure whether the tax withholding is for US or for India. I am planning to report the “Sell to Cover” in my “Schedule D”. Please let me know if my reporting is correct. Also does 30.9% withholding looks little high and I am not sure it was paid to India or US – any comments?
Few additional information. I understand the 30.9% is the India tax. So the RSU during vesting was taxed for India FBT. Since I did not receive any income in this do I report this vesting in my Schedule D?
Bala – Sorry I have no idea how you are supposed to report taxes withheld and paid to India.
Ok – you may have answered this – but I am still bit confused! I had a grant of 400shares…it lapsed on 1/22/2008 – they took out 150 units to cover tax – so i have 250 units left at $16.96 a piece. Several years later, on 7/23/10 I sell them for $14.27. Since they lapsed in 2008, and i had then in shares…this is a regular stock sale…correct? Where the cost is the $16.96 a piece (plus commission) and the income is $14.27? So in this case I actually have a loss of almost $2.70 per share…is that correct? And then what is the determination in Schedule D of Short Term? I had shares lapse as late as 1/22/2018 and 3/5/2018 and sold them on 7/23/10 – are they short term because I only held them for no more than 6 months? Sim & # 8211; this is from 2018! I didn’t know about your site, or what I needed to file – and the IRS sent me a nice reminder letter (and a not so nice bill!) because I didn’t provide the cost basis – I assumed the sale (which was all captured in my W-2) ws all taxed at the full amount it should as a benefit…oops!
Do you know if RSU are considered community Property?
Taxfool – Sorry I don’t know the answer to your question.
Using Turbotax and trying to amend a 2018 return. I have everything except for 2 questions:
1. to verify are Grant date and Award date the same thing?
2. What do I do if the income on one of the lots sold in 2018 was put onto a 2009 W2 rather than a 2018 (the date sold) W2. I understand that I am taxed when they are vested but when I include the income that was taxed in 2009 in Turbo Tax it tells me that it can’t be more than the other two lots that were both vested and sold in 2018. I’m sure I messed up by not selling the 2009 lot in 2009, but I held onto it until Feb 2018. I don’t want to pay tax on income that was already taxed in 2009. Do I just complete the amended return with the error in it? or should I do something else? Any suggestions would be appreciated!
This article and the follow-up conversations have been a wealth of information. I had an RSU vest last December. Right or wrong, I chose to pay the taxes out of pocket and keep all of the shares. I paid this to a brokerage (Merrill Lynch). Looking at my pay stub for that period, I see an entry for RSTR STK TAX OFFSET for the dollar amount of the taxes paid. This was, for some reason, added to my YTD Earnings. This doesn’t seem right to me. If the company had paid the taxed on my behalf, that would make sense, but since I paid these out of pocket, I don’t quite understand why this is being added to my earnings for the year. Estou esquecendo de algo?
Chris Trost says.
RSUs were granted to me in 2009 when I was a resident of Wisconsin. A year later during the 3-year vesting period, I became a resident of another state having no state income tax. The custodian withheld Wisconsin income tax on the RSU distribuiton even though I was a resident of Washington State. My question is whether it was proper to withhold Wisconsin tax due to the fact that I was a resident there when the shares were granted even though I was a resident in a different state at the time of vesting.
Chris Trost – Sorry I don’t know the answer to your question.
Olive Baker says.
RE: Restricted Stock Vesting.
Please give me some advice.
Tax dedution: Taxable as earnings?
W2 Box: I know W2AV for inctive options stock. What W2 box for Retricted Stock Vesting?
I work for a company called “A”. they award RSUs at every focal review(every year). These RSUs vest every 3 months. I still work for the same company. I started working at this company in 2004. I moved to India office in 2018(separate entity of the same company) and although i joined there as a new employee, i get to keep the unvested RSUs and they follow the same vesting rules, and finally i had to move back to US 2018 Nov and start working at the same office again.
I got my W2 for for 2018, where I had amount “x” as my US Income. (out of which “a” for the wages and “b” for the RSU sales). out of “b” RSU sales, some income is considered as India income and there were taxes paid in India…”b” = “India considered Income” + “income allocated to US”.
If I hadn’t had an RSU sale, I would have taken the “US reported income” as my W2 income + filed the Foreign Earned income for the India wages(and took the foreign tax exclusion) and it would have been fine.
but in this case my W2 has income, with a component of the income for the India with taxes paid in India.
So I was thinking, I will just report the W2 income + India wages income and then take the India paid taxes as the foreign tax credit..(basically I am not using Foreign Tax exclusion, although I am qualified to do, just because I have income reported on W2, where for some of the amount taxes are already paid in some other country)
Is there something wrong with the thinking here?
So, IRS sent me an angry letter for 2018’s return, saying i owed 2.2k on my stock sales.
I sold my rsu’s asap (blackout trading window of 3-5days, typically) and i saw on my w-2 that my income and my taxable income reflected the shares withheld at time of vest. Basically, the difference between my income and taxable income was the total proceeds from my stock sales.
So, i amended my 2018 return. No biggie, Turbotax (desktop download, efiling was obviously closed) was really good at walking me through what to enter, and everything broke even again as expected. (How many stocks vested? On what day? How many shares were withheld to cover taxes? what was the price when it vested? what was the price when you sold? etc)
I’m trying to amend my 2018 return, since I know I didn’t include my stock sales and I don’t want the irs hunting me down again.
However, this time the online tool isn’t as upfront about getting answers.
I had 65 shares vest on 02/01/2018 at $35.50. 24 were withheld immediately for taxes, and a delicious 41 shares ended up in my etrade account. after the blackout window opened, i sold them for $35 each.
Yes, it was reported on a 1099. No, the cost basis was not included, but I can find this within my etrade account details. (Date of sale, net proceeds, and date acquired are obvious)
However, I DID have shares withheld at vest to cover taxes. Do I need to select the “yes, taxes were withheld for this sale?” Or no, since no additional taxes were taken from my executed shares (minus the withheld ones)? No matter how I enter this number, either the IRS owes me a bazillion dollars, or I owe the government a bazillion dollars.
Also, since this was a rsu grant “bonus”, is the cost basis $0 or is it 41x$35 for the whole kit and caboodle to show the loss/gain?
I received “statement of taxable income” from my employer for 166 shares which got vested on November 9th 2018. The total W-2 Income was also included in there. I didn’t place(sell or buy) any trade in 2018, so I didn’t receive any 1099 form from Etrade (I confirmed this etrade also). I paid my taxes(during vesting period) through my account instead of paying through stocks.
Should I report this “statement of taxable income ” when I am filing tax this year? If so can I use turbo tax to do it. Any suggestions would be of great help.
I work for a company that switched to stock awards as RSUs which mature over 5 years. In the last several years now that the RSUs have been in place – loyalty, respect, job security, balance of personal and work life have become miserable. But, to now leave means leaving a lot of money behind (RSU revert back if you leave or are terminated). This becomes a huge beating stick for the corporate management team. Have others seen this in your companies where RSUs are part a big of the compensation?
Thanks for wonderful post on how to report the “sell to cover” related stock sales. Initially, I was thoroughly confused on what to do as even IRS helpline was not that helpful. Luckily, found your post and successfully filed my tax returns.
Appreciate your help for posting this article to help every one.
If I had 140 shares vest in 1st quarter and company covered and I had 87 shares left, if I sell the 87 remaining shares 6 months later are they taxed again when dispersed to me? Or is only the amount of the gain in the stock price from the date of vesting to the date of sale on the remaining 87 shares taxed on payroll?
Karol – The latter. Only the amount of the gain in the stock price from the date of vesting to the date of sale on the remaining shares. You basically bought those shares with your after-tax cash bonus.
Mike Chartier says.
Harry, great work and thanks for explaining something that I have been trying to understand for many years. A+
Hi Harry. The RSU articles are great. I am pretty sure I understand the RSU wht mechanics but am getting tripped up when I compare to stock option activity. I have both showing on my 1099-B.
My company take the net issuance approach on RSUs and I sold the net shares distributed to me a week or so after receiving them (all occurred in same year). I tend to view the allocation of the total FMV of my award into two pieces – the shares I actually receive and the value of the withholding paid to the IRS on my behalf. In your example, the total FMV is $5,000 and I get $3,000 in shares that I can keep or sell and I get $2,000 in withholding “credit” that is essentially my money but is paid to the IRS as a prepayment of my tax on the award (actual tax could be higher or lower). Since I further sold the shares distributed me, I have gain/loss based on sale proceeds vs my basis ($3,000 in total or $60 per share).
My 1099 for this makes sense to me. Where I am getting confused is that I exercised stock options this year for the first time. Assume I exercised 800 shares at a strike price of $10 and automatically sold at $15 per share. My taxable income was $4,000 (gain of $5 per share times 800 shares). There was withholding of $1,000 (at 25%). All of this shows up in my W-2 which makes sense to me. But I don’t understand why my 1099-B shows my basis in the sold shares as $15,000 such that I have no gain or loss (actually a small loss but I am ignoring commissions). It makes sense that there is no gain or loss on the sale of the shares since I did not hold them long enough to allow price fluctuation but I would have thought in order for me to be credited for withholding taxes (which I was), the shares I was able to sell after exercise should be lower (same concept as the RSU net issuance). My 1099 shows the sale as 800 shares even though it shows the net amount of shares for the RSU sales.
As I typed this out, it became more clear in that the FMV of the stock option exercise event was $4,000 and I received that in cash of $3,000 ($4,000 less $1,000 wht) and in withholding tax “credit” of $1,000. My taxable income should only be $4,000 which will already be reflected in my W-2. So, it makes sense that my basis and sales proceeds should be the same on the sale. I think I was just confused since my basis for RSUs were based only the net shares received whereas for my stock options my basis was based on the total number of shares. The difference seems to be that the sales proceeds for RSUs were also based on the net shares and for the stock options based on the total number of shares.
Sorry for the confusing discussion but thought I would post anyway in case you had any different view or if it would help anyone else.
@Rob – Your $15,000 should be $12,000 ($15 * 800), but other that that it all makes sense. Your basis in the option exercise isn’t just your taxable income. It’s that plus your cost to acquire the shares (the $10/share strike price). Think of RSUs as options with a $0 strike price and a mandatory exercise upon vesting.
I sold restricted shares last year. They were “awarded” to me as part of an incentive plan around bonus time. These shares were not purchased by me. Anyway, they were originally awarded at a much lower share price than when I sold them. So, there is about a $5000 gain. That seems to have affected my federal tax refund by about $800-$1000. Not sure if I should see a tax specialist. In turbotax, I chose the option that I “bought” the stock because there wasn’t an option in turbo tax for employee awarded stocks.
The award was already added to your W-2 at that time. It would be the same as paying you cash and having you buy the shares.
One thing that is puzzling is if I get RSU that got vested and for simplification I just hold on to them.
I am still paying taxes twice.
1. At the time when they are vesting, certain RSU and sold to cover tax.
2. When I file my Tax Return in year vesting happens, all vested RSU income is added to my W2, including RSU that were sold to cover tax. So my AGI is higher by that amount and I pay tax the second time because the RSU sold to cover Taxes do not appear in Federal / State / Other Taxes sections of W2.
Not to mention I will paying capital gains when I sell them in future.
So this is different from Cash Bonus as tax is accordingly reflected in Federal / State / Other Taxes columns in W2.
So is this accurate assertion ?
This part is not true: “the RSU sold to cover Taxes do not appear in Federal / State / Other Taxes sections of W2.” Your W2 will include the value as taxes withheld.
Informed that as of 2017 the cost basis on 1099 for stock options we purchased will be what we actually paid instead of what the market price is on day of purchase. This is the first year IRS is doing this they said. Shares held at Merril Lynch. Said my accountant would have to adust cost basis. I have seen my 1099 and he was correct it is showing 52 instead of 75 for cost basis. we paid 52. per share. My accountant does not know what she needs to do to adjust it. I have tried several accountant and they donot know either. What should we do since that is a huge difference since we got 169 shares that we purchased at the lower price in the stock option. Please adivse. This is driving my crazy.
I believe this change affects stock option exercises and ESPP, not necessarily RSU. This article is about RSU.
We did have 40% taxes that we had to pay for for withholding taxes.
stephanie b says.
husband got 42 shares of restricted stock. he actually recd 28 shares as 14 were withheld for taxes. he got a 1099 for the 28 shares which shows the gross proceeds of 9880.03 and the cost basis of 9869.89. he also recd another 1099 for the 14 shares of stock which show a gross proceed of 4922.88 but the cost basis is blank. when doing my tax return should i put the cost basis for the 14 shares also as 4922.88?
My husband cashed in some stock options (Restricted Stock) and some ESSP with E*Trade in 2017. All of them were classified as “non coverered Security” on the 1099-B. I did our taxes with TurboTax Premier this morning and after much frustration (I’m far from being an expert at this!), this is what I ended up doing. If someone would confirm my understanding of the new reporting rules and my subsequent reasoning, I’d be grateful:
Here is some information that I gathered from the various forms, notes on the E*Trade website, brochures, etc, that I read.
This was information provided by my husband’s employer:
“What are the new rules?
· Effective January 1, 2017 the cost basis reported on Form 1099-B for stock plan securities will reflect the price you paid to acquire the stock (for example, the grant price or purchase price).
· In past years, the IRS allowed brokers to increase cost basis to include ordinary income amounts you recognized for the securities.
· Beginning in Tax Year 2017, ordinary income adjustments by brokers are no longer allowed.
O que isso significa para você?
· You will need to understand how much ordinary income was recognized for stock plan securities sold in your account, so you can make any necessary cost basis adjustments when you file your taxes.
This is what I observed after perusing our 1099-B from E*Trade:
When importing my E*Trade 1099-B form into TurboTax, the “date acquired” and “cost basis” fields were left blank and I had to then input data into each of those fields manually for each lot sold.
For the cost basis, I first input the figures from the “Cost or Other Basis” column from the 1099-B. Since most of the lots on the form showed “$0” in that column, my tax bill was very, very high. (The ESSP lots did show a “cost” listed, which ended up being only the Acquisition Cost portion of the Cost but the Restricted Stock lots all showed “0” as the cost listed).
I then read in an E*Trade brochure entitled “Reporting the Release and Sale of Restricted Stock or Performance Stock on your Tax Return” that states: “The ordinary income from the vesting (or award, if you filed an 83(b) election) that was reported on Form W-2 can be used as a cost basis adjustment on Form 8949, so that you would not be subject to double tax on this income.” Furthermore, in the same brochure under “What is my cost basis for the restricted stock or performance stock?” the answer states “Your total cost basis for the stock is equal to your acquisition cost — in other words, the amount you paid for the stock, if any — plus the amount of ordinary income you recognized when the stock vested (or when it was awarded in the case of a Section 83(b) election.)”
As directed by the brochure and the explanation from my husband’s employer (quoted above), I then viewed the Employee Stock Plan Gains & Losses page on E*Trade. On that page itself, the cost basis listed for each lot was the same as on the 1099-B. HOWEVER, for each lot sold, there was a small arrow next to the word “sell” (at the beginning of the line) and when I clicked on that arrow, I could then see the detail of the cost basis, which was indicated once again as being the combination of the Acquisition Cost AND the Ordinary Income. However, (because nothing is ever easy when doing one’s taxes!) those lines were listed separately and I had to calculate the total by hand. I created an Excel spreadsheet where I reported everything – my own version of the 1099-B but with the information that I needed – so I have a clean copy of everything on one page since E*Trade won’t let me print the “extended” version of their Employee Stock Plan Gains & Losses screen with all the details.
As I understand it (someone correct me if I’m wrong!), the Ordinary Income part of the cost basis is income that my husband’s employer had already reported on his W2 form when the stock had vested, and on which we had already paid federal taxes.
I then corrected the cost basis for each lot into TurboTax by changing it from the “Cost” listed on the 1099-B to the Acquisition Cost + Ordinary Income total (Adjusted Cost Basis) that I had calculated on my spreadsheet. This lowered our tax bill by 2/3 so I really hope I was right. I was thinking about getting an accountant to double-check this but if people are reporting that accountants don’t seem to know how to report those either, maybe I’ll take my chance with the IRS (I haven’t submitted the return yet). I don’t see how an accountant could have the information needed without having online access to our E*Trade account, though, since the Ordinary Income isn’t being reported to the IRS by E*Trade (so it’s not on any printed or imported forms).
Sorry for the long post!
This article is about RSUs, not ESPP. For a step-by-step guide on how to report the sale of stocks from RSUs in TurboTax, see Restricted Stock Units (RSU) and TurboTax: Net Issuance.
Thank you for such a informative piece. You had saved me THOUSANDS this year! The 1099-B has reported 0 in Box 1e Cost or Other Basis on the RSU sales transaction. While using Turbo Tax to import the 1099-B the whole amount of the proceed has been treated as Gain. Only by the end I am getting suspicious the substantial tax return amount difference churned out by TT than the last year then I noticed this problem.
In my opinion Turbo Tax drops the ball big time here. Its helping topic on Cost Basis didn’t list RSU and how to calculate it, thus made user unaware of the 1099-B pit fall.
I will be more careful about how much trust I will put into Turbo Tax in the future.
This is such a great article & thanks for all of your efforts in what’s an extremely complicated area. This may have been asked, but can you PLEASE assist me? My organization awards us several performanced based RSU awards throughout the year, which are taxed and a portion of shares are held for tax purposes. In 2017 I sold a significant number (all under a year). My new accountant was going off my 1099 and the Capital gains were through the roof and the cost basis was blank. My question is how do you calculate the cost basis? My accountant states the cost basis is $0. I thought the cost basis was the stock was at the time of vest x the number of shares. Thus the gain or loss would be the number of shares x the stock price at the time of sale. Isso é correto? Again, I sincerely thank you!
I also sold ESPP, but that cost basis is much easier to calculate.
Daryl – The correct basis is the per share price on the vesting date times the number of shares sold. If the shares sold came from multiple vesting dates, you will have to break them down and add them up. See the linked article under #1 Net Issurance for how to do it in TurboTax. It will give your account some clue for how to do it in his or her software.
Thank you for this site! So fantastic. Obrigado. I have a corner case question. I am an American employee of a European firm posted Germany. My RSUs vested last year (and the year before), and are held in a German bank. I don’t receive a W-2 since I live, earn and pay taxes in Germany. I was doing my taxes by-hand, blissfully leaving out RSUs since I was not doing anything with them – which is why they were easy to do!
Started using TurboTax this year after I learned about the RSU tax treatment and came across this page. Once again, thanks. Now my question.
I believe I can manually enter last year’s data in per what you suggest. But what do I do about the year before?
If you don’t get a W-2, is the value of the vested RSUs included as your income in Germany? If it is and you are using it for your US tax return, then it’s already accounted for. If you need to add this income for previous years you can always amend your returns.
Obrigado! The salary statements here are inscrutable and I could not figure this out, so I broke down and asked around (Payroll did not know what I was asking!) – they did not include it!!
I’ll now see how I can enter it for 2017 based on your (so excellent! thanks again) explanation above. And look into amending for the year prior.
Either way, I see an extension request in my near future. Grrrr & # 8230;
Don’t know how to work out the Social Security / Medicare portion of the taxes. Does IRS do that automagically?
RHarry – Sorry I don’t know how it works when you work overseas.
John Smith says.
I have a “sell to cover” RS transaction. My 1099-B does not report a Date of Acquisition (Box 1b) or a Cost or other Basis (Box 1e). I assume the Date of Acquisition is the same date as the sale date? The cost basis is unclear however. Since this is RS (an employee award), the shares were not purchased by me. They were “awarded” to me by my company based on my performance. So if these shares were awarded (not purchased), would the cost or other basis be 0 (since I did not purchase)? Or would I find the cost or other basis by multiplying the FMV of the shares at the time of award by the number of shares?
The Date of Acquisition is the date the shares vested. The cost basis is the price on the vesting date times the number of shares sold. If your plan says it’s RSU then it is.
John Smith says.
And its also not clear whether I have an RS or an RSU. My year end stock plan summary says the Grant Type is an RSU. But the description in TurboTax sounds like an RS (employee award for performance).
A grant your employer gives you of the company’s stock. Your rights to the stock are restricted until the shares vest. The vesting period is satisfied by the passage of time, the company’s performance, or your performance. Shares are generally forfeited if you don’t meet the conditions established by the company prior to the end of the vesting period.
John Smith says.
So I chose the RSU option. The only question I have left is that on one of the screens in Turbotax, it asks for the following information:
Total shares vested/released:
Shares withheld (traded) to pay taxes:
Are these specific to the sell to cover situation? According to my statement, 107 shares were released on April 23. It also says that 64 were retained. 43 were “Release – sell to cover”.
Is the “shares withheld (traded) to pay taxes” the same as the number of shares sold to cover?
Did I do this correctly?
Total shares vested/released: 107.
Shares withheld (traded) to pay taxes: 43.
John Smith says.
Just another note. I started the above (sell to cover report) by reporting a sale of stock under an RSU plan. Initially, Turbotax walks me through the net proceeds calculation (date sold, # shares sold, selling price per share). Total net proceeds are calculated (minus commissions). So, 43 shares * 32.xx (share price) – comissões.
Then, on a completely separate screen (2 steps later) it wants to know information about the vesting/release of these shares (Enter Vesting/Release information). It asks for “shares withheld (traded) to pay taxes” as mentioned above. Isn’t that the “Sell to cover” shares that I am reporting? Isn’t that the shares I just reported 2 steps back with the net proceeds? Is Turbotax recognizing that “shares withheld (traded) to pay taxes” is the same as shares that were reported as sold in the net proceeds?
I have restricted stock units for Company A(private) which has a parent company B(private). My stocks vest every year. After 2nd year the parent company B said that the Company A is dissolved. There is no payroll running for Company A right from the inception. Company B being the parent was running the payroll. When I have requested the price for the vested stock for the two years which I was supposed to get they said the company A is dissolved I will not be getting any money. What can be done in this scenario ?
My question is about cost basis, and thus taxable income.
My company vests my RSU award on April 1 (or other quarterly dates), but we have a closed trading window that does not allow me sell the stock vested within that grant except for 30 day intervals starting after the earnings call at the end of the same month.
Thus, effectively, my actual award (stock that can be sold for monetary recompense) might be legally mine on April 1, but the basis for income seems like it should really be the FMV of the stock at the opening of the trading window.
Example: if i am granted 10,000 RSU that vest on April 1, and the price on April 1 is $100/sh, then it is reported to the IRS that i have made $1,000,000 . My company performs what amounts to the Sell to Cover that you mention, taking away 4000 of my RSU and giving that to the government to cover payroll taxes. I am left with 6,000 RSU that supposedly are worth $600,000, but which legally i am not allowed to sell. Later, on May 1, when the market opens, the stock is worth $1/sh . Now, i have $6,000 worth of exercisable equity, and if the brokerage and the IRS did not quite calculate my tax liability correctly in the sell-to-cover, i could be “under water” (and let’s say the the $400,000 they collected in taxes on April 1 was about 2% below what’s needed for that part of the tax liability due to other income circumstances that cause the withholding to be under-estimated); then the $6,000 worth of remaining stock owned isn’t even enough to cover the remaining 2% miscalculation .
Shouldn’t it be the case that the FMV of the 4,000 RSU used to pay the taxes should be $100 shr, and thus the $400,000 in taxes paid would be properly accounted for, and then the other 6,000 RSU that i own would be taxed at the FMV at the first moment at which i’m allowed to sell them, or $1/shr? and shouldn’t i then only be taxed on $406,000 instead of on $1,000,000?) and shouldn’t i thus get some of that originally collected $400,000 back as a refund?
yes, the numbers in this example are exaggerated: the April 1 cost of the stock in question was about $47, and the first chance FMV for sale was about $35, and the amount of stock was about 3250 shares; i was choosing some large round numbers to make a point).
In other words, why should i have to pay tax on some amount of money that i can’t actually make any use of based on the legality of insider trading rules and the enforced trading rules around the sale of my company’s stock as granted through RSU.
You will have to explain to legislators and get them to change the law. Whether you “should” or not is really not the question. You can only go by what the law says.
I had restricted stock that vested in July, and this award is all new to me. I just got my W2, and was surprised to see it was counted as income. Unfortunately the company did not sell any shares for withholding, so now we are looking at a HUGE tax payment to the government. We decided to sell the shares to pay for our huge tax bill, but they withheld half the shares for withholding at the time of sell. Where do I find information on this situation?
Hi, I had vested RSU and ESPP shares which I sold in 2018. The company withheld shares for taxes upon vesting. I believe from the sales that these have been reported in my W-2 as additional wages. Also in 2018 I had a bad year trading and have a good chunk of capital losses. Is there any way to apply those capital losses to offset the income gains from the RSU and ESPP reported to my W-2? Obrigado,
Dave – You get to offset up to $3,000 worth of capital loss against income, after you first offset any realized capital gains. Beyond that, no. You carry forward the loss and offset another $3,000 next year, and so on.
Ingrid McClure says.
Thank you for the great article on clarifying the RSU’s for ordinary income tax – I understand that completely. What baffles me is the impact on AMT – what amount is used on line 17 of the Form 6521 in the calculation of AMT? Is it the cost basis at the time of the vesting, selling date or at the end of the prior tax year? We sold all our RSU’s in the year in which they vested so we had a short term gain (understand all of that), understand schedule D and form 8949, but just need to know what figure to use on the AMT calculation on form 6251. Note we did not pay anything for the RSU’s. Any help would be appreciated – obrigado.
OBRIGADO. This is the first site to explain RSUs succinctly and in a manner I could understand and apply to my taxes. And I’ve spent quite a bit of time googling this.
Thank you, Harry. This is a great post!.
I have another related question – My employer issues dividends in the form of “restricted stock” equivalent (not cash payout) and I received 1099-DIV from the brokerage house.
I read somewhere that dividends as “restricted stock” equivalent are treated as regular income.
How do I enter these in TurboTax? (any insight is greatly appreciated).
Agradeço antecipadamente.
Obrigado pelo artigo. My first time dealing with RSU. If $46,000. was added to the w-2 to cover sale of 300 shares. And $100,000. was added to w-2 to cover taxes (600 shares). But on the 1099 B it shows the 300 shares at $46,000. but an additional 200 shares sold for $15,000.00. I do not think that the 200 shares were included in my w-2 but my husband does. How would I know ? Just ask my company?
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O que é estoque restrito e como é tributado?
O estoque restrito (não deve ser confundido com uma unidade de estoque restrita ou RSU) geralmente é concedido a diretores e executivos da empresa, que então possuem a ação no final do período de aquisição.
Também chamado de estoque de letras ou estoque da Seção 1244, um prêmio de estoque restrito vem com strings em anexo; por exemplo, ele não pode ser transferido e pode ser perdido se o destinatário não corresponder às expectativas.
A menos que você tenha feito uma eleição 83 (b), não informe um prêmio de estoque restrito. Na verdade, você não informará nada até que as coleções sejam armazenadas. No entanto, se você receber dividendos no prêmio entretanto, isso será relatado na caixa 1 (salários) em seu formulário W-2.
Se você fez uma eleição da Seção 83 (b), seu empregador informará o valor justo de mercado do prêmio na caixa 1 do seu W-2. Se você também receber dividendos no prêmio, esses serão reportados no formulário 1099-DIV.
Uma vez que você está totalmente investido, o estoque é todo seu. Se você vender alguma ação, você receberá um 1099-B da corretora com as informações de ganhos ou perdas.