Question

RSU Sale To Cover sold in two lots

Forum|Forum|5 years ago
April 28, 2021
1 reply
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The page "Let's get some purchase info about this RSU sale" is confusing when filling out a for a Sell to cover transition.

I had 340 RSUs vest in 2020. Two days after my vest date, the brokerage sold 97 shares in two lots at different prices to cover taxes.

On 1/1/20 I vested 340 shares at $36.00

On 1/3/20 broker sold 97 share in to lots, 96 @ $37.50 with $20 commission and 1 at 37.40 with $0.01 commission.

I still hold the remaining 243 shares.

I have two sale transitions on my B-1099B to report.

How do I fill out the "Let's get some purchase info about this RSU sale" for each of these? Do I fill out the same for both based on transaction? If I do same for both, I get a "Need Review" but no help text to say what the issue is and cost basis seems incorrect.

Box Sale 1 Sale 2 or Sale 1 Sale 2

Total Vested 340 340 340 340

Share withheld 97 97 96 1

Date Vested 1/1/20 1/1/20 1/1/20 1/1/20

Market Price $36.00 $36.00 $36.00 $36.00

Price Paid $0 $0 $0 $0

Commission $20.01 20.01 $20.00 $0.01

Box 1e CB $3,456 $36 $3,456 $36

Should I enter the actual cost basis in Box 1e on the

"Now, we'll enter one sale on your E*TRADE SECURITIES LLC 1099-B" page? Turbo tax doesn't seem to be filling it correctly?

TurboTax Premier Online

AmyC

Employee

So you have 2 sales. One for 96 shares and one for 1 share to report. Acquired 1/1/2020 and sold 1/3/2020.

You have the sales prices. You need the basis. The basis is the amount in your box 1 on w2 plus commission paid. Your w2 should have a statement with the amount for the 340 shares. Take the 340 shares worth of income and determine the amount per share.

I want to urge you to create a financial notebook that is kept separate from your tax return. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your carryover information, and proof of your basis in your various investments, including RSU. Keep your notes for determining the price per share and this w2 in here.

Use your price per share from your w2 and the commission prices paid to determine your correct basis.

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F

FatChanceAuthor

Thanks for reply. I already tried that but it didn’t work in Online version. After spending 2hrs on the phone with TurboTax specialist who could look at the resulting background tax forms and confirmed that no matter what we tried, the forms were not filled out correctly. Bottom line is TurboTax online is programming is wrong. I was told to use the desktop version instead, which was better but still I could figure a method to enter 2 sell cover transactions that report taxable income correctly. Bonus with download is you can confirm the form yourself. I finally just combined both reported sale transactions as one transaction and that worked. Bottom line, must use download/cd version, not online version and combine all sales as one transaction which is fine because you only FMV price and net proceeds and not the day of sale stock price