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7 votes
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How do I calculate the cost basis of Restricted Stock Units (RSUs)?

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 ...
Craig W's user avatar
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7 votes
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What is the law/regulation which prohibits brokers from reporting basis on RSUs?

These are "noncovered" securities. The regulations require the brokers to report the price of acquisition (the "award" price), but not the price of recognition (the taxable value ...
littleadv's user avatar
  • 177k
5 votes
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What is the purpose of an RSU Tax Offset?

After staring at the RSU Vesting check stub (aka an off-cycle payslip) and entering in the taxes paid information to my personal accounting software it occurs to me that this RSU Tax Offset may simply ...
jxramos's user avatar
  • 1,431
5 votes

Why do some employers in the United States ask employees to accept the grant when granting them Restricted Stock Units (RSUs)?

How would the employer enforce the restrictions in the RSU agreement if the employee didn’t accept the agreement? For example, many RSU agreements prohibit the employee from hedging the stock ...
David Schwartz's user avatar
4 votes
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Why is the cost basis reported by a broker on RSUs 0 USD?

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 ...
Ross Patterson's user avatar
4 votes

Short and long term cap gains taxed higher than expected

You may have run into one of the more devious issues of the tax code: "phase outs". Certain deductions (state/real estate taxes, dependents, overall deductions, AMT deduction) are are reduced or ...
Hilmar's user avatar
  • 7,915
4 votes

Short and long term cap gains taxed higher than expected

In addition to the income tax on capital gains, you may also have to pay Medicare tax on investment income. The Medicare tax has two rates, 2.9% and 3.8%. Investment income is taxed at the 3.8% rate ...
Brythan's user avatar
  • 21k
4 votes

Why Would a Company Change Restricted Stock Units (RSUs) Vesting Plan?

What financial consideration would a company have when changing from Plan A to Plan B? Employees get access to some of the RSUs sooner, but the overall vesting period increases, so it's a trade-off. ...
D Stanley's user avatar
  • 137k
4 votes
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When are RSUs taxed for pre-IPO company?

Also from the page you refer to is: At newly public companies, grants made before the initial public offering (IPO) may also require a liquidity event (i.e., the IPO itself) to occur before the ...
TripeHound's user avatar
  • 9,170
4 votes
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Choosing tax-withholding method for restricted stock units

The reason for this is that when the RSUs vest, they become income to you, and your employer is obliged to operate PAYE on that income, withholding some of it to pay tax to HMRC. The income is ...
GS - Apologise to Monica's user avatar
3 votes
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Selling RSUs that vested at different values

No, you're not missing anything. RSUs are pretty simple when it comes to taxes. They are taxed as compensation at fair market value when they vest, basically equivalent to the company giving you a ...
Craig W's user avatar
  • 15.9k
3 votes

Have I been paying double taxes on my RSUs for 3 years?

Did I pay unnecessary taxes? Probably. You should have put in the value (price*shares) at the time of vesting as the cost basis - the difference between that and the price you sold it for is your ...
D Stanley's user avatar
  • 137k
3 votes

How are long-term/short-term capital gains tax calculated on restricted stock?

Is the Grant Date or the Vest Date used when determining the 12-month cutoff for long-term and short-term capital gains? You don't actually acquire the stock until it's vested, so that is the date ...
D Stanley's user avatar
  • 137k
3 votes

What happens to unvested RSUs when a public company is bought out by private firm?

I would ask your HR or benefits department to be certain, but here's how I read that without any specific knowledge of the situation: What is right to receive the RSU consideration? Company A was ...
D Stanley's user avatar
  • 137k
3 votes
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What cost basis do I report on the 1099?

You wouldn't fill out a 1099, your employer would or possibly whoever manages the stock account. The 1099-B imported from E-Trade says I had a transaction with sell price ~$4,500. Yes. You ...
Brythan's user avatar
  • 21k
3 votes
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What Shares Do I Actually Have?

Tax wise, you simply report the income from your units like any other shareholder or LLC member it's just at some point the income will go away. And go away it will, unless you demand your units be ...
KevinRethwisch's user avatar
3 votes

Where are RSUs issued from?

The number of authorized stocks for a company big enough to hire 100's of people per month (never mind per day) will likely have 100's of millions of shares authorized, not 100's of thousands. For ...
The Photon's user avatar
  • 1,402
3 votes
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Must I select "The cost basis is incorrect or missing on my 1099‑B" in TurboTax in the case of vested RSUs?

Yes, because it is incorrect or missing on your 1099-B. This makes it easier for the IRS matching program to identify mistakes. Your return will not match the 1099-B they've received, so by checking ...
littleadv's user avatar
  • 177k
3 votes

RSUs: Can the cost basis for sell-to-cover transactions be calculated using FIFO, or does it have to be LIFO?

Sell-to-cover sells shares from the specific lot of RSUs that are vesting. To change that, you'd have to elect cash withholding and manually sell the shares you want to sell. However, the strategy you ...
Stan H's user avatar
  • 7,551
2 votes
Accepted

Company RSUs vested, but they sold to cover when I wanted to pay tax

Does this make sense? I'm concerned that by buying shares with post tax income, I'll have ended up being taxed twice or have increased my taxable income. ... The company will then re-reimburse me for ...
D Stanley's user avatar
  • 137k
2 votes

Have I been paying double taxes on my RSUs for 3 years?

I know this question is old, but just wanted to let you know in the case you haven't amended your returns yet. Yes, you have likely overpaid on taxes. You have essentially double reported income, once ...
Magnolia 313 Accounting Servic's user avatar
2 votes

How are long-term/short-term capital gains tax calculated on restricted stock?

Fidelity has a good explanation of Restricted Stock Awards: For grants that pay in actual shares, the employee’s tax holding period begins at the time of vesting, and the employee’s tax basis is ...
Joe's user avatar
  • 35.8k
2 votes

Short and long term cap gains taxed higher than expected

There are phase-outs of several tax reductions that are based on AGI, so an increase in AGI can increase the tax on your other income in addition to the 36.8% or 18.8% tax on the investment income. ...
prl's user avatar
  • 2,817
2 votes

Why Would a Company Change Restricted Stock Units (RSUs) Vesting Plan?

The old vesting plan is unusual, the new vesting plan is much more common. I'd suspect that the company had an unusual vesting plan for some unusual reason and now that the company is getting more ...
David Schwartz's user avatar
2 votes

If I earn RSUs in a private company while living in California, and am no longer employed with the company at IPO, do I owe California taxes?

Yes, you will owe income tax to California. It doesn't matter if you quit your job prior to the IPO; your RSUs still came from a CA source, and they were granted and vested while you were/are a CA ...
SFBlackbird's user avatar
2 votes

How are RSU stocks taxed?

TL;DR There's no real difference in how RSUs are taxed and how other stocks are taxed. It's just a matter of logistics. You can think of it as your company pays you a bonus which you are required to ...
chepner's user avatar
  • 4,466
2 votes
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Weighing unvested RSU's against stock options in a job offer

Stock options are hard to value since there is a lot of risk associated with it. The amount of risk varies a lot with the specifics. They are worth less than the projected win and more than 0. The ...
Hilmar's user avatar
  • 7,915
2 votes
Accepted

What should I look at to decide whether to keep or not my Restricted Stock Units?

For starters, is the RSU already transferrable? As for your questions in regards to the movement of the stock over time, results can vary. If the stock is stable, then yes, over its lifetime it should ...
Ben Smith's user avatar
2 votes
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What's the difference between Released and Received RSU's?

Usually you pay taxes on the shares you receive, so the broker sells a certain percentage of shares and sends the money to the IRS. I received 10 shares earlier this year but only got 6 of them ...
xyious's user avatar
  • 2,778
2 votes

What is the cost basis for my RSU? My 1099-B says $0

Your math doesn't add up (where is this $5,000 that you didn't receive?) but the cost basis for the shares you received (if taxes were withheld, which it sounds like they were) should be the price of ...
D Stanley's user avatar
  • 137k

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