Tax / Stock question?

[Argo]

Can't find good information on this anywhere, so I'll give ATOT a shot before finding an accountant.

The scenario:

You already hold 10 shares of your company, with cost basis price of $5 per share.
You have 10 more shares vest, which you sold immediately using same dale sale setup. The vesting price is $20.

The question becomes, when reporting the same day sale - do you use cost basis price of $20 (since that was exactly the same lot that you received and sold) or cost basis price of $5 (due to Fifo rule)?

 

[FelixDeCat]

Each group at different cost basis or average cost basis. You may only choose one and must stick with it IIRC.

 

[JS80]

Originally posted by: FelixDeKat
Each group at different cost basis or average cost basis. You may only choose one and must stick with it IIRC.

no....FIFO is default. However you can choose to sell lots. In etrade if you have multiple lots you can choose which ones to sell.

 

[TuxDave]

Originally posted by: JS80

Originally posted by: FelixDeKat
Each group at different cost basis or average cost basis. You may only choose one and must stick with it IIRC.

no....FIFO is default. However you can choose to sell lots. In etrade if you have multiple lots you can choose which ones to sell.

That's what I think. You can choose a specific lot but if you don't, then they'll assume FIFO.

 

[Argo]

So since in this case brokerage is actually selling the exact same lot that I got (since it's "Sell As they vest" rule), the fact that I already have previous shares should have no effect?

 

[Argo]

For everybody interested - looks like there is a way: http://www.fool.com/taxes/2000/taxes000818.htm