I'm in the US/New York, preparing to file 2015 federal returns.
I was given an incentive bonus by my employer some years ago, in the form of shares of that employer's stock every year for three years as an incentive. Each of those years, I was given a certain amount of shares of that stock, and was asked whether I wanted to pay taxes by reducing the amount of stock to pay the tax, or to pay a tax from cash/a bank account. I elected to pay the tax by using a portion of the shares instead of paying out-of-pocket.
Very recently, I sold that stock in question, at a loss relative to the stock price when I was given this stock. Given that I already paid taxes on it to begin with, do I need to report this as a capital gain of the amount I received in the sale, a capital loss of the actual loss relative to when I received it and paid taxes on it, or something different?
Please let me know if I need to clarify any info in this question.