How to Verify RSU Gain/Loss in 1099-B
It has been difficult to calculate capital gains/losses from sale of Restricted Stock Units (RSU). Traditionally, employee stock plan providers (e.g. Fidelity) sent 1099-B form with incomplete information. For example, they didn’t provide correct cost basis for each sale.
In the past few years, the providers improved their 1099-B reporting to provide cost basis and capital gain/loss accurately, yet they put a disclaimer that it is tax payer’s responsibility to verify the numbers.
Here is what I use to calculate them quickly.
Ordinary Income Reported (Market Value when Vested) = Quantity of Vested Shares x Market Price per Share when Vested
1e Cost Basis = Ordinary Income Reported - Total Tax Withheld
1d Sales Price = ( Number of Shares Sold x Selling Price Per Share ) - Sales Expenses (Commission/Fee)
Capital Gain/Loss = 1d Sales Price - 1e Cost Basis