So I reported capital gains per 1099B to my tax consultant. He says I can adjust this further and include cost of RSUs vested this year, thereby reducing capital gains(these shares were not sold). Is this allowed? Unable to find this exact treatment online
When rsu vests, a portion is withheld for taxes and you pay income tax on that. Now say you kept the rest of rsu that wasn't sold on vesting and decided to sell 2 years later. You'd think that the cost basis should be the total value of whatever was vested at the time of vesting. However irs doesn't let brokerage adjust the basis and on forms like 1099 basis is reported as 0 incorrectly.
The cost basis for capital gains purposes is not zero. It is also not the value per share on vest*num shares you still have. It is value per share on vest date* total number of shares vesting, including the ones sold to withhold taxes