I'm trying to un-confuse myself about something I seem to have wrong based on my reading (This site, btw, seems to be a good resource.)
If I vest 100 shares and the price was $20 that day, I will only receive, say, 75 shares because 25 were withheld to pay taxes due at the time of vesting (assume net issuance model, not sell to cover, etc.)
Now, what is the cost basis of those remaining 75 shares?
Is it $20*100 or is it $20*75?
Everything I read seems to say the latter, not the former.
My logic is that I was paid $2000 and withheld on $2000. That's what the IRS was told (via my w2) how much I was compensated. I paid taxes via the share witholding on that $200. Why isn't my basis $2000?
There's an accounting principle I'm missing here... what is it?