How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7197
Experience:  Extensive Experience with Tax, Financial & Estate Issues
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

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: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year 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 1 year 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 1 year 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 1 year 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.