Why is the cost basis reported by a broker on RSUs 0 USD?
Personal Finance & Money Asked on April 1, 2021
I notice that E-Trade reports on the Form 1099-B that the cost basis for vested RSUs is 0 USD.
- Shouldn’t the cost basis that report in my tax form be the value of the shares at the time of vesting?
- If so, why isn’t the value of the shares at the time of vesting reported as of the the cost basis on Form 1099-B?
Snapshot from the Form 1099-B form, Cost or Other Basis column for an RSU row:
One Answer
This is typical for RSU vesting, because you didn't buy the stock through the broker. Fidelity and Vanguard do this too. Just fill out your Form 8949 or Schedule D and adjust the basis to the actual basis. If you're a sell-on-vest person, don't forget that the brokerage probably charged you a commission, making it likely you've got a tiny loss for tax purposes.
Correct answer by Ross Patterson on April 1, 2021
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