Amazon Employee Restricted Stock (RSU) Sale

[Glenndd]

Client received Fidelity  tax statement regarding sale of stock

    Page 2 1099 B show proceeds with no basis and calls it a realized gain

    Another page is labeled Supplemental Stock Plan Lot Detail

        This page shows proceeds again along with a column that labels it as ordinary income that is reported on W-2. One of the 3 lots sold has an adjusted loss of $427. The other 2 lots show purchase and sale dates being the same

    How do I handle this on the clients tax return

[rbynaker · Accepted solution]

I always get a year-end paystub from the client and tie into the RSU income.  Then tie shares issued to the broker statements as either sold or still held on 12/31/xx.  The brokers are supposed to report this with 100% gain on the 1099-B but then you make the adjustment on the 8949 for W-2 compensation basis.

The Fidelity supplemental info is probably correct.  If there's a loss though, you might check +/-30 days for wash sale adjustments on any newly acquired shares.

Rick

[qbteachmt]

Because this activity happens through the employer to the broker, you need to use both references. The vesting of the stock is the date the value is considered taxable, which is why the value is part of the W2. To meet withholding requirements, some of that stock is sold by the broker, which is why you see a 1099-B. Your taxpayer might or might not have sold all their stock, so you should document what they still have ownership of and what is that basis, for when they sell later.