Restricted Stock Grant


M

Mike Pate

In Jan '08 I received Restricted Stock Grant from my employer which
vest over 3 years. I searched through MSMoney help and was unable to
find any assistance on how to enter stock grants.

So I would like to document how I think I will have to enter the grant
myself and get feedback from members on this group who know much more
than me about MSMoney...

1) Enter the total number of shares granted as a stock option with 3
year vesting with a cost basis of $0.

2) Each year 1/3 of them vest and I will be taxed on that portion as
ordinary income.

At this point I have 2 choices:

3a) Have the broker sell the appropriate number of shares necessary to
cover the tax on that income. I will enter the stock sell and
allocate the proceeds to income tax withholding.

3b) Write a check for the tax withholding for the shares vested.

If I do this, I *think* I will correctly record my taxable income, my
tax liability and the cost basis of my shares/grants.

I would apprecaite any feedback on where I am not tracking this
correctly or a better way to track these grants.

Mike
 
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T

Taylor

Mike Pate said:
In Jan '08 I received Restricted Stock Grant from my employer which
vest over 3 years. I searched through MSMoney help and was unable to
find any assistance on how to enter stock grants.

So I would like to document how I think I will have to enter the grant
myself and get feedback from members on this group who know much more
than me about MSMoney...

1) Enter the total number of shares granted as a stock option with 3
year vesting with a cost basis of $0.

2) Each year 1/3 of them vest and I will be taxed on that portion as
ordinary income.

At this point I have 2 choices:

3a) Have the broker sell the appropriate number of shares necessary to
cover the tax on that income. I will enter the stock sell and
allocate the proceeds to income tax withholding.

3b) Write a check for the tax withholding for the shares vested.

If I do this, I *think* I will correctly record my taxable income, my
tax liability and the cost basis of my shares/grants.

I would apprecaite any feedback on where I am not tracking this
correctly or a better way to track these grants.

Mike
What you are doing sounds good. I just wait until the stocks vest, since
they are not "yours" until then. Then I add them to the broker account
using "Add Shares". I don't bother with the withholding, since that is,
again, not "mine", but held by the employer. Thus, I just add the net
shares to my account.
 
B

BNSGuy

What you are doing sounds good.  I just wait until the stocks vest, since
they are not "yours" until then.  Then I add them to the broker account
using "Add Shares".  I don't bother with the withholding, since that is,
again, not "mine", but held by the employer.  Thus, I just add the net
shares to my account.- Hide quoted text -

- Show quoted text -
ok. so how do you figure the cost basis? If you get Vesting stock
grants, your out of pocket on each vesting anniversary is $0, but (in
my case, anyway) the employer withholds taxes based on the value of
the vesting stock. When you go to sell, what do you use as the cost
basis? I've already paid taxes on the value of the stock even though
I did not "purchase", so when I sell do I have to pay tax on the
initial value again by claiming a cost basis of $0?
 
M

Mike Pate

My company allows me to write a check for the tax liability so I don't
have to sell stock to cover that amount. I perfer that option because
after only a week, I can sell the same stock and its a capital gain
instead of ordinary income.

Mike
 
R

Ryan A

When the RSUs grant you'll get a vesting advice. The cost basis is the price
of the stock on the grant date. The vesting advice will have the total
shares granted, cost basis, and tax info if shares were withheld to cover
taxes.

My company only allows selling of shares to cover taxes. Any advice on
dealing with this? Do I enter gross income in the cash transactions of the
brokerage account, buy the shares, then sell the withheld shares and enter a
tax payment transaction?

Thanks
 
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M

Michael J. Blazin

How you outlined it works for me. The "vesting" of the zero cost option
appears as income. I place it in the cash account and then deduct the
required taxes. I assume that your firm deducts Fed Income Tax, SS, and
Medicare. With the reminder you buy the shares. Since you are "buying" the
shares out of cash in a separate transaction, Money has the cost at current
day stock price. If you transfer in cash to pay taxes, you just have more
funds to buy more shares.
It's worked for years for me.
 
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