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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6228
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I receive RSUs at my company in 2015. They are listed on my

Customer Question

I receive RSUs at my company in 2015. They are listed on my W2 as income. However the statement from eTrade did not list the basis, so when imported to TurboTax, there was not basis. The tax therefore is one amount with this scenario.
Now when I add the basis back in, which should theoretically reduce the gain, my taxes went up by almost $5000. I saw that the increase was in the AMT.
My questions are:
1. In principle, the taxes should be lower since the basis is now added back and the gain is reduced 95%. Why is that?
2. Can I simply not list the basis, and keep the forms as I downloaded from eTrade and go with that?
Submitted: 9 months ago.
Category: Tax
Expert:  Stephen G. replied 9 months ago.
1. It's the typical issue with the AMT; what you say is true enough although the problem is that the taxable income was reduced so much that it was reduced to $5,000. less than the AMT.2. Certainly you could eliminate the basis, but it would be wrong. Just because the tax basis of the stock wasn't fed into e-trade doesn't mean that you can disregard the tax basis of the stock any more than you could fail to enter it if it did get entered by importing it from e-trade.Once you start dealing with the AMT strange things can happen; you've run into one of them.I'm afraid that you are stuck with this fiasco; hopefully the RSUs' liquidation made up for the tax issues.Steve G.
Customer: replied 9 months ago.
So even though I already paid taxes on these RSUs, i.e., I received 1000 units and company sold 330 to pay for taxes therefore only took in 670 shares in value--it seems like the AMT is double taxing me on these transactions.
Expert:  Stephen G. replied 9 months ago.
Well, I guess it's part of the way you look at it. I can't disagree with you, but something else is reducing your income that is causing the AMT to kick in; it's easy enough to figure out if you simply pull up Form 6251 and look at the components of the Form. You'll want to make sure that you understand where all the numbers are coming from. Personally, if the AMT applies I'd want to be very careful that I haven't made a mistake in the input and that I knew where all the numbers are coming from at what the Tax Preference items were, particularly if I had any passive losses or other carryforward items, NOL deductions, depletion or similar type items.
Expert:  Stephen G. replied 9 months ago.
Just Checking in....................Do you have any follow-up questions?If not, please remember to rate my response as that is the only way we receive credit for our work.Steve G.