Calculating the cost basis of RSUs (Restricted Stock Units) is essential for tax reporting and can help you determine the amount of capital gain or loss when you sell your RSUs. This article provides a handy calculator to help you easily compute the cost basis of your RSUs.
Formula
To calculate the cost basis of RSUs, you can use the following formula:
Cost Basis = Grant Price per RSU × Number of RSUs
How to Use
- Enter the Grant Price per RSU in the first input field.
- Enter the Sale Price per RSU in the second input field.
- Enter the Number of RSUs in the third input field.
- Click the “Calculate” button.
The calculator will instantly compute the cost basis for your RSUs.
Example
Let’s say you were granted 100 RSUs at a grant price of $50 per RSU, and you sold them at a price of $60 per RSU. To calculate the cost basis, enter these values into the calculator:
- Grant Price: 50
- Sale Price: 60
- Number of RSUs: 100
After clicking “Calculate,” you will find that the cost basis is $5,000.
FAQs
- What is the cost basis of RSUs?
- The cost basis of RSUs represents the total value of the shares at the time of acquisition, including any associated taxes or fees.
- Why is it important to calculate the cost basis of RSUs?
- Calculating the cost basis is crucial for determining capital gains or losses when you sell RSUs and reporting accurate tax information.
- Do I need to include taxes and fees in the cost basis calculation?
- Yes, the cost basis should include any taxes or fees associated with the acquisition of RSUs.
- Can the cost basis change over time?
- The cost basis typically remains constant unless there are adjustments due to stock splits or other corporate actions.
- Is the cost basis used for tax reporting purposes?
- Yes, you will need to report the cost basis when you sell your RSUs for tax purposes.
Conclusion
Calculating the cost basis of RSUs is a fundamental step in managing your investments and complying with tax regulations. This calculator simplifies the process, allowing you to accurately determine the cost basis of your RSUs with ease. Knowing your cost basis is essential for making informed financial decisions and fulfilling your tax obligations.