RSU cost basis adjustment for 1099-MISC

Jul 06, 2012 2 Replies

I was W2 employee for part of 2010 and did some work as independent for the rest of 2010. I did further work as 1099 for the same company in 2011



The company policy was to continue their restricted stock unit (RSU) benefit as long as any service was provided. So I got some RSU vested and sold even though I was not an employee. I got a 2011 1099-misc from the company. The amount on that 1099-MISC includes the RSU cost basis in addition to my contract work fee. I got a 1099-B from the broker showing the gross proceeds but no cost basis



I am trying to use turbo tax online. Can't figure out where I can stick in the cost basis (at the moment that income is doubled as part of gross proceeds in 1099-B and as part of 1099-MISC income)


-Antony


The RSU cost basis was already accounted for in that 1099-misc. So that number is the basis for those shares. Any money above that was a gain that goes on to a Schedule D.

We should verify that the 1099-MISC contains the basis of the shares. This is required for W-2 forms, that the salary line will include the value of RSU or NQSO, but I'm not sure that the 1099-MISC is required to be this smart.

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