RSUs are assigned a fair market value at the time they become vested. In other words, if the company’s stock is valued at $20 per share at the time the RSU becomes vested, then the per-unit value of the RSUs is $20. RSU Value (when vested) = $20 per share. Taxable income (when vested): $20 x 1000 = $20,000.

How do I calculate cost basis for restricted stock?

Your cost basis is the amount your employer included on your W-2, which is the closing price on the vesting date times the number of shares vested. In this example, you will show a short-term loss of $11 on your tax return because of the brokerage commission and the SEC fee.

Do I use adjusted cost basis for RSU?

Restricted Stock Units (RSUs) Non-covered: cost basis not reported to IRS FMV* You will not need to adjust your cost basis, but you will need to use Form 8949 to report cost basis and the proceeds for these transactions.

How do I report cost basis for RSU?

For RSUs, the cost basis should be the fair market value (FMV) of the shares on the day they vest. This should be listed on your 1099-B from E-Trade, but perhaps not. If it’s missing or $0, you’ll need to adjust your basis to avoid being double taxed.

How is the cost basis for RSU calculated?

(GROSS number of shares vesting before any “withhold” of shares or sale of shares for taxes) X (per-share FMV at vesting.) So your per share basis is the same as the per share FMV your employer used.

How much are restricted stock units ( RSUs ) worth?

The company’s stock is worth $10 per share, making the RSUs potentially worth an additional $10,000. To give Madeline an incentive to stay with the company and receive the 1,000 shares, it puts the RSUs on a five-year vesting schedule.

What’s the difference between RSUs and stock options?

In contrast, RSUs are assigned a fair market value at the time they become vested. A closer look at the differences and similarities of RSUs and stock options are provided in this chart: The stock is assigned a fair market value at the time of vesting.

How much money did I make from RSUs?

I was granted RSUs that vested 1/3 per year, over 3 years. From E*Trade I have: In 2017 I sold all of these, with proceeds of $7,814.83 and $10,709.51 respectively.