Restricted Stock

[Norfolk]

I am new to board. Have a question?? Got the statement from E-Trade but was unsure of what the Basis is on the Stock for tax purposes. On 09/19/03 my check stub showed an increase in the YTD earnings of $4103.00 which was above what I worked that week. If I divide by the number of shares I recieved 278 this equals $14.76 Per Share. Is this the Basis on my remaining shares.

Thanks in Advance,
Norfolk

 

[oldiebutgoody]

I believe it was $7.34 per share.

 

[Norfolk]

Well, thats what I thought at first sight also,,, but correct me if I'm wrong,, The $7.34 is what they sold it at to pay your tax... I don't think that is the Basis. My pay stub showed an increase of $4103.00. The numbers just don't add up. Kind of like Daves plans.

 

[BoeingBoy]

Norfolk,

Oldie is right, your basis is $7.34. If (or when you did) sell the stock, the difference between sales price and basis price is capital gain (loss).

One guess on the figures you cite that resulted in $14.76 per share. The increase in YTD earnings is for all the shares that vested, including any sold to pay taxes. The taxes withheld amount should have jumped more than normal also, to reflect the taxes paid with the money from the withheld shares.

If you are furloughed, you pay tax on the entire amount of stock to be received whereas only half the stock vested at the end of July. Therefore no stock will be withheld to pay taxes in the future vestings.

Jim

 

[BoeingBoy]

Norfolk,

Oops, guess if you're looking at an October pay stub you weren't furloughed on July 31, so disregard that last part.

I assume the 278 shares is what ended up in the E-Trade account.

Jim

 

[Norfolk]

Boeing Boy,

You are Correct. Thanks a bunch. My total shares are 559 which was not reflected on the E-Trade Statement but on a company document I found. 278 that vested July 03 and 281 that will vest in 05 + 06. That math does add up. Still not sure about Dave.

Thanks again

 

[TheX]

Nice profit. Now pay the tax on it. Thankyaverumuch.