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I think my question was indirectly covered couple of times here. But I wanted to double check my understanding! Here is the situation:

I received some ristricted stock units (RSU) in 2011. A part of the award was released (168 shares to be exact to make it easy with the math) in 2012. My company (per my direction) sold 61 shares on the day of the release to cover various federal/state taxes. 107 shares were issued to me and currently sit in my account with the book keeper of the plan.

My company verbally informed me (after my enquiry) that all the shares released (168) were included and reported as income in box 1 of the W-2. And the taxes paid were included in various tax boxes of the W-2. All I received from the book keeper of the plan was a statement with all the details. I received no other tax document like 1099-B either from my company or the book keeper.

Here are my questions:

1. I do not need to declare a stock sale in 2012 on this because it's already included in my 2012 income and taxes paid, right?

2. When I do sell the 107 shares the cost basis is going to be the market value on the date of the release, right?

3. When I sell the 107 shares my basis is again for 107 shares only, right? No need to go back to the original 168 number, right?

4. When I do sell the 107 shares am I going to recieve 1099-B from the broker?

Thanks very much for any info.

-DU
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1. I do not need to declare a stock sale in 2012 on this because it's already included in my 2012 income and taxes paid, right?

Correct, but for the wrong reason. RSUs are a bit different than options. RSUs are pretty much just funny money. They aren't real - they are simply a piece of paper. When they are finally released to you, your company has to go out to the market (or dip into it's treasury stock) to get the shares they are giving to you. So they really took cash equivalent to 168 shares, used part of that to buy stock and used the balance for the various payroll tax withholdings. You got a bonus paycheck with the net check issued in shares of stock instead of cash.

So you didn't sell 61 shares (168 granted minus 107 actually issued), you purchased 107 shares.

2. When I do sell the 107 shares the cost basis is going to be the market value on the date of the release, right?

Yep.

3. When I sell the 107 shares my basis is again for 107 shares only, right? No need to go back to the original 168 number, right?

Correct again.

4. When I do sell the 107 shares am I going to recieve 1099-B from the broker?

You should. At least under current tax law and regulations.

--Peter
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Thanks very much, Peter! I'm going to print your answer and file in my taxes folder for future reference.

Wish my company was this detailed in their documentation.

You are a tremendous help on these boards!!!

-DU
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