ATX related

[TaxMan60601]

Is is okay if I use code "12 - Exercised granted option" in ATX , to report RSU on Schedule D since I do not see a better choice.

TIA

[kcjenkins]

Sounds workable to me

[TaxMan60601]

Thank you, KC. Actually it is on form 8949 before Schedule D, and code 12 is "Expired granted option" but still I cannot find a better option to report sale of vested restricted stock units.

My wonder actually is why should the taxpayer have to report this transaction on sch D at all, since as far as I understand RSU-s are treated as deffered compensation; or there is something within the ATX that I cannot understand or figure out. However, all I have from the client is one incomplete 1099-B form and no info about vesting date, MV on vesting date, fed tax paid!? ..... sounds weird .... Sounds like I will need more info from him, lol.

Obviously it should not be reported on Line 21 as other income, no info on ATX KB too.

I am a bit confused now so any help will be appreciated.

Thanks again.

[jklcpa]

If this transaction is because the RSU became vested, that income is reported on the W-2 and taxed as ordinary income. It's my understanding that RSUs are only taxed as cap gains if they've been held beyond the vesting date and sold later on, and only then would they be reported on Sch D.

[kcjenkins]

I agree with Judy, and would add that when they are sold, they are normal sales with the amount that was included on the W-2 at vesting as the 'cost basis'. so yes, you do need more info before you go forward. I think I misunderstood the original question.

[TaxMan60601]

Sorted out. The client has missed! to provide the vesting schedule, where all vested/sold shares for the year are listed. Ended up with short term capital loss.