Hi,
I am an H1B holder.
Resident for tax purposes.
Status: Married Filing Jointly. My wife is not working.

Kindly let me know how should I report my ESPP and RSU gains/loss in Schedule D.
I got my Etrade 1099-B (it includes all my ESPP and RSU transactions).

Overall Long-Term loss: ~ $10,000
Overall Short-Term gain: ~$6000

Questions:
1. My 1099-B showing overall proceeds.. but for most of it they have already withheld the tax. If I check the 'Adjusted Gain/Loss' section in E-trade I could see the adjusted gain & loss (as mentioned above). Not sure where it is reflected in the 1099-B.
Kindly let me know where should I report this already recognized income in Scheudle D.

2. Can I offset my Long-Term loss with Short-Term gain ?

3. Even if I can offset my long-term loss with Short-term gain, still left with ~4K loss.. Can I deduct this loss some how ? If so how can I do this ?

Thanks & Regards.

1) You have to factor in what has already been taxed as compensation. Often, the gain is treated as compensation, which erases the gain on the stock transaction. However, the stock transaction still has to be reported! Generally, it is a neutral transaction (basis = proceeds) or one with a small loss (due to the commission being added to the basis.

2) Yes, but only after you have reconciled short-term loss against short-term gain and long-term loss against long-term gain.

3) Up to $3,000 of the loss can offset other income, such as salary. The remaining $1,000 is carried forward to future years.

If you need professional help in this matter, this IS what I do! Please contact me at the email address in my profile.

Hi AtlantaTaxExpert, Thanks for responding.. Have few more clarifying questions.. would appreciate your help. 1. Should I include those stock transactions in 8949 or just adding the overall proceeds & basis (of Short-term & long-term) in Schedule-D is enough ? Also, in which column I should adjust these already taxed part? 2. All my gains are Short-term and all losses are long-term... So can I still offset all my Short-term gains with long term loss.. 3. Good to know thanks :)Thanks & Regards

1) The overall proceeds and basis is sufficient IF you send a copy of the Form 1099-B with the return.

The adjustments for those transactions already taxed cannot be explained here. It has to be determined after evaluating the paperwork provided by the employer.

2) Yes