Restricted Stock Unit (RSU) Basis and Shares Withheld for Taxes

Forum|Forum|3 years ago
February 23, 2023
1 reply
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I had 100 Restricted Stock Units (RSUs) vest with 30 RSUs withheld for taxes on 2/15/23. The net 70 shares were made available in my brokerage account on 2/22/23. My question is if my basis on these net 70 shares (for when it comes time to sell them) is the stock price on the vesting date of 2/15 or is it the price on the 2/22 date that the shares were available to me in my brokerage account?

Also, is the withholding of the 30 RSUs for taxes considered a stock sale which should be reported on my 2023 return, or is it not considered a stock sale as RSUs were simply withheld and never owned by me?

1

128TCDAuthor

Employee

Quick Edit: These are Performance Stock Units (PSUs) not Restricted Stock Units (RSUs). Same questions as before.

T

ThomasM125

The price on the date the shares were delivered to you would be your basis. You did have a sale of stock and the proceeds were used to pay your withholding tax, so you will need to report that on your 2023 tax return if you receive a form 1099-B reporting the sale. Since you sold the stock when you acquired it, there should be little if any capital gain to recognize on your tax return

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