Comments on: RSU Sell To Cover Deconstructed http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Shreyas http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-2129 Shreyas Sun, 31 May 2009 16:51:33 +0000 http://blog.thefinancebuff.com/?p=246#comment-2129 very very useful...thanks! very very useful…thanks!

]]> By: TFB http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1903 TFB Tue, 14 Apr 2009 16:42:37 +0000 http://blog.thefinancebuff.com/?p=246#comment-1903 dal - There are two schools of thought about the 25 shares and $125 in your example. (a) Do nothing. You got your bonus, paid your tax, used the rest of your bonus to buy 75 shares. (b) Add an entry in Schedule D showing zero gain. Sell 25 shares for $125 with a cost basis of $125. I wrote in this post last year how to do (b). I believe method (a) is fine as well. dal – There are two schools of thought about the 25 shares and $125 in your example. (a) Do nothing. You got your bonus, paid your tax, used the rest of your bonus to buy 75 shares. (b) Add an entry in Schedule D showing zero gain. Sell 25 shares for $125 with a cost basis of $125. I wrote in this post last year how to do (b). I believe method (a) is fine as well.

]]> By: dal http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1902 dal Tue, 14 Apr 2009 16:25:09 +0000 http://blog.thefinancebuff.com/?p=246#comment-1902 Great run down. One more twist, though. 100 shares vest at $5. The $500 income is included on the W-2. 75 shares available now, 25 used to pay taxes. For the 25, no 1099 is generated. They were not "sold" by the company or broker, it appears. The $125 for taxes was simply credited to me and also whos up on the W-2. If the sale of shares for taxes is not reflected in any 1099, is it still required to record it on a Schedule D? Great run down. One more twist, though. 100 shares vest at $5. The $500 income is included on the W-2. 75 shares available now, 25 used to pay taxes. For the 25, no 1099 is generated. They were not "sold" by the company or broker, it appears. The $125 for taxes was simply credited to me and also whos up on the W-2.
If the sale of shares for taxes is not reflected in any 1099, is it still required to record it on a Schedule D?

]]> By: TFB http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1896 TFB Mon, 13 Apr 2009 18:24:40 +0000 http://blog.thefinancebuff.com/?p=246#comment-1896 Kavita - Try splitting up your grant, like 90/10. Kavita – Try splitting up your grant, like 90/10.

]]> By: Kavita http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1893 Kavita Mon, 13 Apr 2009 16:27:15 +0000 http://blog.thefinancebuff.com/?p=246#comment-1893 hi, we had some of our RSUs vest last year (say 100 shares). the sell-to-cover order for this was however executed as 2 sales of say 38 and 2 shares each. how do we enter this on Turbo Tax. if we enter this as 38 on a grant of 100 and 2 on a grant of 100, Turbo Tax says there was a total grant of 200 shares that vested. thanks, kavita hi,

we had some of our RSUs vest last year (say 100 shares). the sell-to-cover order for this was however executed as 2 sales of say 38 and 2 shares each. how do we enter this on Turbo Tax. if we enter this as 38 on a grant of 100 and 2 on a grant of 100, Turbo Tax says there was a total grant of 200 shares that vested.

thanks,
kavita

]]> By: Charu http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1796 Charu Mon, 30 Mar 2009 11:20:01 +0000 http://blog.thefinancebuff.com/?p=246#comment-1796 This is very useful. Any idea what changes if the grant is a Restricted Stock Award instead of an RSU? This is very useful. Any idea what changes if the grant is a Restricted Stock Award instead of an RSU?

]]> By: tlc http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1728 tlc Sat, 14 Mar 2009 01:58:31 +0000 http://blog.thefinancebuff.com/?p=246#comment-1728 (continued) We've considered reporting the trades as schedule D sales. But we had the same situation last year and didn't have to do that. I don't know if Turbotax just got too smart for itself, or if there's somewhere else we need to enter those numbers. BTW, these are handled by the same brokerage firm. The distributions associated with one grant date are always "Trades". The others are always "Sales". THANKS tlc (continued)

We've considered reporting the trades as schedule D sales. But we had the same situation last year and didn't have to do that. I don't know if Turbotax just got too smart for itself, or if there's somewhere else we need to enter those numbers.

BTW, these are handled by the same brokerage firm. The distributions associated with one grant date are always "Trades". The others are always "Sales".

THANKS
tlc

]]> By: tlc http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1727 tlc Sat, 14 Mar 2009 01:50:49 +0000 http://blog.thefinancebuff.com/?p=246#comment-1727 My wife has 2 sets of quarterly RSU distributions from the same company. One is clearly sell-to-cover. There are two transactions on her statement for each (one for the tax portion) and they're covered on the 1099-B. The other set has no "sale". The Confirmation of Release lists, Award Shares Released, Shares Traded, and Shares Issued. The "Traded" shares cover the taxes. These "Trades" are not listed on the 1099-B. I don't understand the terminology, but it balances. The income is in the W-2. Taxes were withheld by keeping a fraction of the shares. Statements show that those taxes went to the feds. All without "sales". My problem is that Turbotax complains about the income I listed when filling out the sell-to-cover sales doesn't match the box 14 RESTK number. There are no "sales" in the 1099-B for those. Any ideas? Is there another place to list RSUs besides schedule D? They're already in the W-2 income. Is Turbotax stupidity or ours? My wife has 2 sets of quarterly RSU distributions from the same company. One is clearly sell-to-cover. There are two transactions on her statement for each (one for the tax portion) and they're covered on the 1099-B.

The other set has no "sale". The Confirmation of Release lists, Award Shares Released, Shares Traded, and Shares Issued. The "Traded" shares cover the taxes. These "Trades" are not listed on the 1099-B.

I don't understand the terminology, but it balances. The income is in the W-2. Taxes were withheld by keeping a fraction of the shares. Statements show that those taxes went to the feds. All without "sales".

My problem is that Turbotax complains about the income I listed when filling out the sell-to-cover sales doesn't match the box 14 RESTK number. There are no "sales" in the 1099-B for those.

Any ideas? Is there another place to list RSUs besides schedule D? They're already in the W-2 income. Is Turbotax stupidity or ours?

]]> By: TFB http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1646 TFB Thu, 26 Feb 2009 07:24:00 +0000 http://blog.thefinancebuff.com/?p=246#comment-1646 KF - The shares you sold were a subset of the vested RSUs. Read again the 2nd last paragraph starting with "Your cost basis in the remaining shares ..." TurboTax questions are unnecessarily complicated and confusing. Use the Spreadsheet-Style Entry or answer Yes to that question. KF – The shares you sold were a subset of the vested RSUs. Read again the 2nd last paragraph starting with "Your cost basis in the remaining shares …" TurboTax questions are unnecessarily complicated and confusing. Use the Spreadsheet-Style Entry or answer Yes to that question.

]]> By: KF http://thefinancebuff.com/2008/04/rsu-sell-to-cover-deconstructed.html/comment-page-1#comment-1641 KF Wed, 25 Feb 2009 20:03:20 +0000 http://blog.thefinancebuff.com/?p=246#comment-1641 I left a similar question on the screen shot page you referenced above, but thought I would try here as well. Your webpage is the closest I have come to being able to solve the RSU mystery in my tax return using Turbo Tax Premiere. But I am unclear on one thing, in Step 5 you say income and tax withholdings are in the W-2. I found the income and tax withholdings from the Vesting in the W-2, but not from the sale of the RSU. Is that the same thing? The RSU's were sold in the same year they vested. Specifically, Turbotax is asking me if the RSU sale was included on the W-2. If I say No, it adds the RSU sale amount to wages/income (and my refund goes down). This doesn't seem right since the RSU was already added to income when it vested. Help please! I left a similar question on the screen shot page you referenced above, but thought I would try here as well.

Your webpage is the closest I have come to being able to solve the RSU mystery in my tax return using Turbo Tax Premiere. But I am unclear on one thing, in Step 5 you say income and tax withholdings are in the W-2. I found the income and tax withholdings from the Vesting in the W-2, but not from the sale of the RSU. Is that the same thing? The RSU's were sold in the same year they vested.

Specifically, Turbotax is asking me if the RSU sale was included on the W-2. If I say No, it adds the RSU sale amount to wages/income (and my refund goes down). This doesn't seem right since the RSU was already added to income when it vested. Help please!

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