Help with reporting RSU sale

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Subject Author Date Help with reporting RSU sale sndobo 01-30-2009  Re: Help with reporting RSU sale Alan 01-30-2009  Re: Help with reporting RSU sale sndobo 01-30-2009  Re: Help with reporting RSU sale Alan 02-03-2009
Posted by sndobo on January 30, 2009, 5:40 pm Please log in for more thread options Hi , I apologize in advance if this question has already been answered . I searched for the possible answer to my question , but could not find it . I was awarded 100 shares ( rsu ) of XYZ , they vested on 05/05/2008 and 40 of them were sold right away to cover the taxes . I was left with 60 XYZ wich I did not sell. This income was included in my W2 form . My question is , do I need to report/file anything on my tax return this year ? Thanks and your answer is appreciated sndobo -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on January 30, 2009, 6:28 pm Please log in for more thread options sndobo@gmail.com wrote: > Hi , > > I apologize in advance if this question has already been answered . I > searched for the > possible answer to my question , but could not find it . > I was awarded 100 shares ( rsu ) of XYZ , they vested on 05/05/2008 > and > 40 of them were sold right away to cover the taxes . I was left with > 60 XYZ wich I > did not sell. This income was included in my W2 form . > > My question is , do I need to report/file anything on my tax return > this year ? > > Thanks and your answer is appreciated > > sndobo > Based on your fact statement, I will assume that the company plan for restricted stock units (RSU) required the issuance of stock on the date of vesting. You sold 40 shares in order to obtain the cash to pay taxes on the amount added to your W-2 as wages. You sold a capital asset and you have to report the sale of 40 shares on Form 1040 Schedule D. It is a short term sale. Your proceeds are what you received for the 40 shares. Your cost basis is the amount of income added to your W-2 for those 40 shares. Usually the sale uses the same FMV as was used to generate your compensation and your Schedule D would not show any gain (cots of 40 shares equals the proceeds from selling those 40 shares). In fact, it might show a slight loss due to some fees or commissions you had to pay. It is possible that the amount of compensation added to your W-2 used a slightly different FMV than the price you sold at. E.g., this could happen if the plan called for the compensation to be based on the closing price at the day before. You would have to ask this question to whomever handled the transaction. You should have received some paperwork that explained this. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by sndobo on January 30, 2009, 9:51 pm Please log in for more thread options > snd...@gmail.com wrote: > > Hi , > > > I apologize in advance if this question has already been answered . I > > searched for the > > possible answer to my question , but could not find it . > > I was awarded 100 shares ( rsu ) of XYZ , they vested on 05/05/2008 > > and > > 40 of them were sold right away to cover the taxes . I was left with > > 60 XYZ wich I > > did not sell. This income was included in my W2 form . > > > My question is , do I need to report/file anything on my tax return > > this year ? > > > Thanks and your answer is appreciated > > > sndobo > > Based on your fact statement, I will assume that the company plan > for restricted stock units (RSU) required the issuance of stock > on the date of vesting. You sold 40 shares in order to obtain the > cash to pay taxes on the amount added to your W-2 as wages. > > You sold a capital asset and you have to report the sale of 40 > shares on Form 1040 Schedule D. It is a short term sale. Your > proceeds are what you received for the 40 shares. Your cost basis > is the amount of income added to your W-2 for those 40 shares. > Usually the sale uses the same FMV as was used to generate your > compensation and your Schedule D would not show any gain (cots of > 40 shares equals the proceeds from selling those 40 shares). In > fact, it might show a slight loss due to some fees or commissions > you had to pay. > > It is possible that the amount of compensation added to your W-2 > used a slightly different FMV than the price you sold at. E.g., > this could happen if the plan called for the compensation to be > based on the closing price at the day before. You would have to > ask this question to whomever handled the transaction. You should > have received some paperwork that explained this. Alan thank you very much for your detailed explanation ! sndobo -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on February 3, 2009, 8:22 pm Please log in for more thread options Alan wrote: > sndobo@gmail.com wrote: >> Hi , >> >> I apologize in advance if this question has already been answered . I >> searched for the >> possible answer to my question , but could not find it . >> I was awarded 100 shares ( rsu ) of XYZ , they vested on 05/05/2008 >> and >> 40 of them were sold right away to cover the taxes . I was left with >> 60 XYZ wich I >> did not sell. This income was included in my W2 form . >> >> My question is , do I need to report/file anything on my tax return >> this year ? >> >> Thanks and your answer is appreciated >> >> sndobo >> > Based on your fact statement, I will assume that the company plan for > restricted stock units (RSU) required the issuance of stock on the date > of vesting. You sold 40 shares in order to obtain the cash to pay taxes > on the amount added to your W-2 as wages. > > You sold a capital asset and you have to report the sale of 40 shares on > Form 1040 Schedule D. It is a short term sale. Your proceeds are what > you received for the 40 shares. Your cost basis is the amount of income > added to your W-2 for those 40 shares. Usually the sale uses the same > FMV as was used to generate your compensation and your Schedule D would > not show any gain (cots of 40 shares equals the proceeds from selling > those 40 shares). In fact, it might show a slight loss due to some fees > or commissions you had to pay. > > It is possible that the amount of compensation added to your W-2 used a > slightly different FMV than the price you sold at. E.g., this could > happen if the plan called for the compensation to be based on the > closing price at the day before. You would have to ask this question to > whomever handled the transaction. You should have received some > paperwork that explained this. > I received the following e-mail from another person using poor etiquette and not posting it to the newsgroup: Question: I am in this exact same situation, EXCEPT, if I were given Restricted Stock instead of Restricted Stock Units, would your answer be different? Answer: No. But for the future, issuance of restricted stock allows you to make a Section 83(b) election within 30 days of grant. This is not available to employees who receive RSUs. To learn about the 83(b) election see: http://www.fairmark.com/execcomp/sec83b.htm -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted mutual fund sale and reporting June 8, 2006, 2:42 pm Reporting of partnership February 27, 2007, 4:14 pm Tip Reporting Question March 31, 2007, 10:34 pm Options Tax Reporting March 4, 2008, 11:31 am oid payee reporting March 31, 2008, 1:42 pm Reporting Roth IRA June 9, 2008, 2:48 pm Schedule C Reporting January 10, 2009, 2:21 pm HSA contributions/ W-2 reporting February 2, 2009, 6:18 pm Schedule K1 reporting March 16, 2009, 2:23 pm S-Corp income reporting December 8, 2006, 2:26 am