Personal Finance & Money Asked on May 21, 2021
I was granted RSUs that vested 1/3 per year, over 3 years. From E*Trade I have:
2016, 133 Shares Vested, 89 Shares Transferred to me, Tax Paid: $3,424.52
2017, 134 Shares Vested, 90 Shares Transferred to me, Tax Paid: $4,795.56
In 2017 I sold all of these, with proceeds of $7,814.83
and $10,709.51
respectively.
Since the original shares were already taxed (I vested 133 and 134, but x-shares were sold for tax purposes, noted above), do I put a cost basis of $0
on the remaining proceeds I received after selling what was left over?
For completeness, here’s my RSU history and how I filed:
Vesting #1 | 133 Shares
------------------------
Vest Date: 07/16/2016
PPS at Vest: $77.83
Shares Assigned: 89
Shares Witheld for Tax: 44
Total Tax Paid (at vest): $3,424.52
Cost Basis: $6,926.87
Sale Date: 02/15/2017
PPS at Sale: $87.95
Vesting #2 | 134 Shares
------------------------
Vest Date: 07/16/2017
PPS at Vest: $108.99
Shares Assigned: 90
Shares Witheld for Tax: 44
Total Tax Paid (at vest): $4,795.56
Cost Basis: $9,809.10
Sale Date: 08/17/2017
PPS at Sale: $116.47
For RSUs, the cost basis should be the fair market value (FMV) of the shares on the day they vest. This should be listed on your 1099-B from E-Trade, but perhaps not. If it's missing or $0, you'll need to adjust your basis to avoid being double taxed. You should have some kind of records to determine the FMV, for example payslips or you should be able to back-calculate it from your W-2 (because it's included as part of Box 1).
Correct answer by Craig W on May 21, 2021
You can find your adjusted cost basis on a supplemental form provided by E*TRADE SECURITIES LLC. This form is separate from a 1099-B.
Answered by Jacob Kalakal Joseph on May 21, 2021
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