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Very true for ESPP, but I haven't seen that for RSUs. Is your broker reporting the cost basis of the RSUs at $0? Otherwise why and how does the cost basis of an
by forbiddenlake 3y ago
Very true for ESPP, but I haven't seen that for RSUs. Is your broker reporting the cost basis of the RSUs at $0? Otherwise why and how does the cost basis of an RSU even change?
- brewdad 3y agoYes. Etrade reports the cost basis of RSUs as $0 on the 1099. You then must manually adjust the cost basis using a second schedule that shows the value of the RSU already taxed as income at the time of vesting. If you don't make this adjustment, you will be paying taxes on thousands of dollars in "gains" that aren't actually gains and have already been taxed as income.
- hamburglar 3y agoFidelity does the same thing. Cost basis of RSUs shows 0 on the 1099 and you get a supplemental 1099 with adjusted cost basis. If you don’t take care to use the adjusted value, you will be paying both income tax and capital gains tax on the market value at vesting, instead of just income tax as you should.