RSU Adjusting Cost Basis

Forum|Forum|3 years ago
February 15, 2023
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I've read through the forums and various other sites trying to figure out exactly what I need to do to adjust the cost basis on the sale of my RSUs, but I'm really confused on the calculation I'm supposed to do.

What I understand is:

RSUs are taxed as normal income when they vest
The 1099-B will report a $0 cost basis
A supplemental info document should show the adjusted cost basis - but I don't have one of these / not sure if I will get one (via E-Trade)

I think I need to find the FMV (I don't see this particular acronym mentioned on any documents in E-Trade) of the stocks when they vested, and deduct the sale of the stocks from that number to determine the adjusted cost basis - is that correct?

e.g. if the vested FMV was $1000, and I sold them for $900, the adjusted cost basis would be $1000 and my gain would be -$100?

I don't know if any of this is making sense, so I'd appreciate any help to point me in the right direction please! I also am not sure how to find the FMV - would that just be the stock price at the time they vested (so I can check the document in E-Trade for when they vested and take the cost per share and treat that as the FMV)?

Thanks in advance!

Graham

Best answer by TomD8

The per share cost basis of your RSU's in any lot is the compensation created by the vesting (which is reported on your W-2) divided by the GROSS number of shares you received in that lot.

TomD8Answer

Employee

The per share cost basis of your RSU's in any lot is the compensation created by the vesting (which is reported on your W-2) divided by the GROSS number of shares you received in that lot.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

ThisIsGrahamAuthor

Thanks for the reply.

Does this mean if I sold shares that vested in 2021, I'd have to get my 2021 W2, grab the value in Box 14, and divide that value by the number of shares that vested to get the FMV?

e.g.

Box 14 = $1200

# of shares = 22

FMV = $54.54

Therefore, if I sold 10 shares for $500, the adjusted cost basis would be $545.4 and the gain would be -$45.4?