how to track RSU (Restricted Stock Units) in Quicken?

Posted by jainraje on September 20, 2009, 5:55 pm

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Any guidance on how to track RSUs in Quicken2008 (or any other
version)?

TIA,
--R

Posted by David Arnstein on September 20, 2009, 10:26 pm

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>Any guidance on how to track RSUs in Quicken2008 (or any other

>version)?

I posted about this a few times over the years. Here is a copy of my
best shot at this problem. I am writing about Microsoft Money, but I
believe that this method applies to Quicken as well.

I will be finding out soon enough, since I am switching back to
Quicken in 2010!

I believe that on the day your RSUs are vested (deposited to your
account) a taxable event occurs. Your employer witholds income tax
immediately. The cost basis of the vested shares is the market value
on the day of vesting. And, you should receive paperwork documenting
these numbers.

I modeled the above assumptions in MS Money as follows:

1. Do nothing until RSUs vest. Wait for documentation of vesting to
arrive in the mail. When the documentation arrives, record the
following in the MS Money brokerage account that you have set up
to track the RSU vesting:

2. Record a purchase of the RSU shares at the stated share price in
the documentation. The account now has a negative cash balance.

3. Record a sale of the RSU shares that your employer used to pay
your witholding tax. Once again, use the stated share price from
the documentation. The account still has a negative cash balance.

(In the above two steps, include any brokerage fees and SEC fees.
Do not include inclme tax, social security tax, etc.)

4. Record a cash deposit to the MS Money account. The total amount of
the deposit should bring the cash balance to zero. But the deposit
transaction should be split into positive salary and negative tax
(witholding) categories. The amount of the witholding should be
copied from the documentation you got from your employer.

If you do all of the above, I *think* that you will correctly record
your taxable salary, your tax witholding, and the cost basis of your
shares. I have to admit that I find tax computations to be confusing.
I hope that I got it right.
--
David Arnstein (00)
arnstein+usenet@pobox.com {{ }}
^^

Posted by jainraje on September 22, 2009, 1:06 am

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On Sep 20, 7:26=A0pm, arnst...@panix.com (David Arnstein) wrote:

> In article <99d634ea-4e58-48f1-8726-98d3c0437...@m3g2000pri.googlegroups.=

com>,

> >Any guidance on how to track RSUs in Quicken2008 (or any other

> >version)?

> I posted about this a few times over the years. Here is a copy of my

> best shot at this problem. I am writing about Microsoft Money, but I

> believe that this method applies to Quicken as well.

> I will be finding out soon enough, since I am switching back to

> Quicken in 2010!

> I believe that on the day your RSUs are vested (deposited to your

> account) a taxable event occurs. Your employer witholds income tax

> immediately. The cost basis of the vested shares is the market value

> on the day of vesting. And, you should receive paperwork documenting

> these numbers.

> I modeled the above assumptions in MS Money as follows:

> 1. =A0Do nothing until RSUs vest. =A0Wait for documentation of vesting to

> =A0 =A0 arrive in the mail. =A0When the documentation arrives, record the

> =A0 =A0 following in the MS Money brokerage account that you have set up

> =A0 =A0 to track the RSU vesting:

> 2. =A0Record a purchase of the RSU shares at the stated share price in

> =A0 =A0 the documentation. =A0The account now has a negative cash balance=

> 3. =A0Record a sale of the RSU shares that your employer used to pay

> =A0 =A0 your witholding tax. Once again, use the stated share price from

> =A0 =A0 the documentation. The account still has a negative cash balance.

> =A0 =A0 (In the above two steps, include any brokerage fees and SEC fees.

> =A0 =A0 Do not include inclme tax, social security tax, etc.)

> 4. =A0Record a cash deposit to the MS Money account. The total amount of

> =A0 =A0 the deposit should bring the cash balance to zero. But the deposi=

> =A0 =A0 transaction should be split into positive salary and negative tax

> =A0 =A0 (witholding) categories. The amount of the witholding should be

> =A0 =A0 copied from the documentation you got from your employer.

> If you do all of the above, I *think* that you will correctly record

> your taxable salary, your tax witholding, and the cost basis of your

> shares. I have to admit that I find tax computations to be confusing.

> I hope that I got it right.

> --

> David Arnstein =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 (00)

> arnstein+use...@pobox.com =A0 =A0 =A0 =A0 =A0{{ =A0 }}

> =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =A0 =

=A0^^

I apprecaite your post (and reposting). I look forward to studing your
method and will provide some feedback on this.