Question

How to report sold stock appreciation rights (SAR) stocks in turbotax? Turbotax only provides RSU, ESPP, NQSO, ISO and RS option.

Forum|Forum|6 years ago
February 29, 2020
1 reply
0 views

I have sold Stock appreciation right (SAR) stock units and RSU in 2019. For SAR transaction, taxes (federal, state, social security, medicare) were automatically deducted at the time of transaction; while for RSU, some stocks were withheld to cover these taxes. Both SAR and RSU before tax amount are reported on W-2, however tax(es) that were deducted during transaction is not included. Also,1099-B i received from broker firm does not provide information for deducted taxes rather it mentioned total gain amount before taxes. it also do not provide information for cost basis (commission fee).

Questions:

1. How do i report SAR gains, taxes deducted and cost basis in turbotax. Stocks assigned, vested and released in multiple years. But sold on the same day.

2. For SAR, since W-2 or 1099-B does not provide information for deducted taxes, would i be charged twice for taxes by reporting under tax return?

Please advise.

Thanks

DawnC

Employee

You can enter a sale that occurred from multiple lots. If you enter the sales as employee stock, TurboTax will give you this option. The cost basis is not the commission fee. You will need to determine the cost basis so you do not pay more tax than necessary; the capital gain or loss is dependent on the cost basis being correctly reported. TurboTax will guide you through getting these numbers right!

SARs are taxed the same way as non-qualified stock options (NQSOs), so choose that option when entering those sales. There are no tax consequences of any kind on either the grant date or when they are vested. Participants, however, must recognize ordinary income on the spread at the time of exercise. These amounts were reported on your W-2(s). Any income taxes from shares withheld for sale was also included in your W-2. You do not factor those taxes in when you report your 1099-B sales, only the compensation added to your W-2.

The amount of income that was included on your W-2 becomes the part of your basis for tax computation when the shares were sold. This is true for both the RSUs and the SARs.

When you enter your sales in TurboTax, use the Guide me step-by-step entry process so TurboTax can help you adjust your basis so your sales are reported in the most tax advantageous way as possible. Take your time entering the sales to ensure your basis and your gains and/or losses are reported correctly.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"