Jump to content
ATX Community

GENENTECH STOCK OPTIONS


Max W

Recommended Posts

Client is employed by Genentech receives SSAR's and RSU's from Roche, he parent company.  Neither type become taxable until sold.  The sales are reflected in Box 1, W-@, and the breakdown is shown in Box 14.   Roche uses Equatex as a broker.  The client sold $85K of his holdings last year.   To report on Sch D, the basis should be the amount added to box 1, W-2.   I am coming up about $5000 short and I don't think there should be any CG on this amount.

I am wondering if the difference is in commissions, but looking at the Equatex Europe stmt, they are about 0.25%, so they don't come close.  Equatex USA only shows the total sale price and nothing else.

Any ideas?

 

Link to comment
Share on other sites

4 minutes ago, Max W said:

They couldn't be added until the stock was sold.  

Yes, I saw that in your original post.  The way I understand each of these, the addition to compensation is at the exercise date/price for the SARs and at vesting/market value for the RSUs, but that the sale doesn't have to necessarily be simultaneous and employee can continue to hold and sell at a later date.

Is my thinking all wrong on this, or is there a specific requirement in this employer's plan that requires the immediate sale?

  • Like 1
Link to comment
Share on other sites

Judy, that is also my understanding.  There may be a requirement in the plan, or it may have been the only way to "buy" shares with a sell-to-cover and what was told to Max was not quite the right situation.  These transactions usually end up with a small capital loss due to transaction fees, but I agree that $5K sounds like something is off somewhere.  

Link to comment
Share on other sites

Sorry, Max, I tried to post more about the situation but the system here said too much time had lapsed and disallowed my edit.  I had begun my edit when the clock struck 12.  Should not lapse in the middle of posting a narrative. 

Fact of the matter, I may not necessarily agree with Judy and Catherine if the company did not add to the W-2 until the sale.

Link to comment
Share on other sites

SAR's and RSU's are essentially the same, except there is a limit on the number of RSU's that can be sold in a given year.

Both are awarded as grants to the employee who must wait until they are vested before selling them.  The employee has no basis in either one.

If the stock has appreciated at the the time of sale,  that appreciated amount is accounted as ordinary income and goes to box 1, W-2.  If there is any change in the value of the stock after it is cashed out , I don't see how it could affect anything.  

 

 

Link to comment
Share on other sites

Do you have the paperwork he received when the transaction actually occurred, in addition to the year-end documents?  I always go through those statements, which hopefully will allow you to tie the number of shares executed/price to the W2 amount and the 1099-B.  Best I got.

  • Like 1
Link to comment
Share on other sites

The client sent two Sale Confirmation letters, but there should be ten  letters as 10 transactions took place on the same day

What is puzzling is that one letter has  $4950.16 ,RSU's, and shows up on the Combined 1099B Form, and the $3823.45 stock, does not.
The RSU's on the W-2 were $3307, so that doesn't match the $4950.
 
What is intriguing is that the $4950 is close to the $5108 "missing" amount. 
  • Like 1
Link to comment
Share on other sites

Get his end of year pay stub too, may have items that were added to the W2 but not reported in box 14. 

I had a client with these (Rusch) RSUs & SSARs. Hopefully your client saved all of the statements. They were truly confusing, but then again my guy was retiring and had no idea his vested options were worth what they were. Always missed a few zeroes when looking at the statements. 

  • Like 1
Link to comment
Share on other sites

Thanks for the suggestion, Joan.  He sent his final 2017 pay stub and have it attached here.  I can't see that it helps, but maybe someone else can.

I don't understand the SSAR and RSU tax being under non-cash earnings and included in the total.

 

Edited by jklcpa
deleted pdf containing confidential information
Link to comment
Share on other sites

1 hour ago, Max W said:

Thanks for the suggestion, Joan.  He sent his final 2017 pay stub and have it attached here.  I can't see that it helps, but maybe someone else can.

I don't understand the SSAR and RSU tax being under non-cash earnings and included in the total.

 

@Max W I deleted the paystub because it contained the client's name and employee number at the top of the 2nd page.

Link to comment
Share on other sites

  • 1 year later...

Hi Max,

I hope you have solved the discrepancies.  I have a new client who also works for Genentech and receives RSU and SSAR from Roche in his W-2 box 14.  I  cannot reconcile his W-2 with his Equatex statements.  Did you ask your client to provide you with any additional statements?  I am trying to determine his cost bases.  Please shed some light on how you reconciled the RSU and SSAR with the Form 1099-B.  Thanks in advance for your help.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...