Tax Help (Company Stock in form of RSU)

[poke2001]

Last year I was given company stock in the form of RSUs paid out 1/3 each year over the next 3. So 1/1 this year I essentially got the first 1/3 distribution so I have nothing on my 2015 taxes I need to worry about.

For 2016 though, I need to make sure I'm covered. The grant was for 360 shares so the payout was 120 shares on 1/1 (actually 1/4) and the price the market opened at. They actually withheld 45 shares for Federal taxes, SS, Medicare and state taxes. Everything I read on this essentially shows I should be good on taxes (if I would have sold immediately), and now I will only be concerned with the gain or loss at the time of sale from the distribution price. Is this correct?

This is all new to me, and I actually had no idea I was going to get this, but was given another 3 year grant this year...so I figured I better understand what my responsibility is before I just blow it on craft beer.

 

[csh]

I usually use Tax Cut. Hope this helps

 

[giddyup]

Your correct , the shares they withheld/sold on your vesting date cover the taxes on you receiving the shares, and since your holding the remaining you will have a gain /loss to report when you sell.

I see Rsu's done differently by different companies from a tax reporting perspective , you will probably get a 1099-B showing the stock sold for taxes that you'll have to put on sch D even thought it's a zero gain since the income is imputed onto your w2

 

[poke2001]

Your correct , the shares they withheld/sold on your vesting date cover the taxes on you receiving the shares, and since your holding the remaining you will have a gain /loss to report when you sell.

I see Rsu's done differently by different companies from a tax reporting perspective , you will probably get a 1099-B showing the stock sold for taxes that you'll have to put on sch D even thought it's a zero gain since the income is imputed onto your w2

Cool. That's basically how the letter I received made it sound, I just didn't want to get hit with a huge tax bill..

my taxes have always been simple enough to use basic tax software, but this was new for me.

 

[Sebastian]

Do some research on cost basis when it comes to rsu's.

 

[Pokes15]

Cool. That's basically how the letter I received made it sound, I just didn't want to get hit with a huge tax bill..

my taxes have always been simple enough to use basic tax software, but this was new for me.

I use TurboTax to do my taxes, and its really easy to figure out cost basis from RSU's.

 

[poke2001]

Your correct , the shares they withheld/sold on your vesting date cover the taxes on you receiving the shares, and since your holding the remaining you will have a gain /loss to report when you sell.

I see Rsu's done differently by different companies from a tax reporting perspective , you will probably get a 1099-B showing the stock sold for taxes that you'll have to put on sch D even thought it's a zero gain since the income is imputed onto your w2

To be clear, is the cost basis at vesting date or grant date?

 

[giddyup]

Vesting date

 

[Bitter Creek]

Last year I was given company stock in the form of RSUs paid out 1/3 each year over the next 3. So 1/1 this year I essentially got the first 1/3 distribution so I have nothing on my 2015 taxes I need to worry about.

For 2016 though, I need to make sure I'm covered. The grant was for 360 shares so the payout was 120 shares on 1/1 (actually 1/4) and the price the market opened at. They actually withheld 45 shares for Federal taxes, SS, Medicare and state taxes. Everything I read on this essentially shows I should be good on taxes (if I would have sold immediately), and now I will only be concerned with the gain or loss at the time of sale from the distribution price. Is this correct?

This is all new to me, and I actually had no idea I was going to get this, but was given another 3 year grant this year...so I figured I better understand what my responsibility is before I just blow it on craft beer.

We may work at the same company.

Q1: Are your HQ in CO?

Q2: Are you in the Tech Sector?

 

[poke2001]

We may work at the same company.

Q1: Are your HQ in CO?

Q2: Are you in the Tech Sector?

No, my company is out of Houston, oilfield services company, pretty big one.

 

[squeak]

No, my company is out of Houston, oilfield services company, pretty big one.

Schlumberger?

 

[poke2001]

Schlumberger?

SLB is technically HQ in France.

 

[squeak]

SLB is technically HQ in France.

Not exactly. There are Executive offices in both. I believe the company is effectively run out of Houston. I could be wrong.

 

[poke2001]

Not exactly. There are Executive offices in both. I believe the company is effectively run out of Houston. I could be wrong.

They do have their US HQ in Houston...you are correct. I deal with one of the France offices though but don't work for them.