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RSU Basis Formula:
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RSU (Restricted Stock Unit) basis calculation determines the cost basis of vested shares for tax purposes. The basis is calculated as the fair market value at the time of vesting multiplied by the number of shares vested.
The calculator uses the RSU basis formula:
Where:
Explanation: This calculation determines the taxable income amount when RSUs vest, which is essential for accurate tax reporting and capital gains calculations upon future sale.
Details: Accurate RSU basis calculation is crucial for determining ordinary income at vesting, calculating capital gains/losses upon sale, and ensuring proper tax compliance with IRS regulations.
Tips: Enter the fair market value per share at vesting date and the number of shares vested. Ensure values are positive numbers for accurate calculation.
Q1: What is FMV at vesting?
A: FMV (Fair Market Value) is the price per share of the company stock on the date your RSUs vest, typically the closing price on that day.
Q2: Why is basis important for RSUs?
A: Basis determines the amount of ordinary income reported at vesting and affects capital gains calculations when you eventually sell the shares.
Q3: How are RSUs taxed?
A: RSUs are taxed as ordinary income at vesting based on the FMV. When sold, capital gains tax applies to the difference between sale price and basis.
Q4: What if shares are sold immediately at vesting?
A: If sold immediately, the basis equals the sale price, resulting in minimal capital gains or losses beyond the ordinary income already recognized.
Q5: Where can I find my RSU vesting information?
A: Vesting details and FMV are typically provided in your equity compensation statements from your employer or the equity plan administrator.