You held RSU shares more than a year after vest and want to know if your sale qualifies for long-term capital gain treatment — or you are choosing a sale date and need to count days from vest, not grant.
In plain terms
Gather before you start
- and per share for each lot you might sell.
- Planned sale date and expected price.
- from prior partial sales if any.
- Whether lots came from multiple vests at different dates.
- Filing status and rough taxable income for rate planning.
How the tax works
income is ordinary wages on your at delivery. After that, shares are capital assets in your brokerage account. Price increases after are unrealized until you sell. IRS rules measure holding period from when you acquired the shares; for standard , acquisition is usually the when shares delivered and became wages — months do not count while shares were unvested.
Selling within one year of typically produces short-term or loss, taxed at rates for federal purposes. Selling more than one year after typically produces long-term or loss on the appreciation above basis, which may use preferential long-term rates when you qualify under federal bracket rules. Preferential rates are not a single fixed percentage for everyone.
Each creates a separate lot with its own and basis. A 2023 lot may be long-term in 2025 while a 2024 lot is still short-term in the same sale year. FIFO defaults in brokers may sell your newest lot first unless you use specific identification where permitted — lot choice affects short-term versus long-term character on Form 8949.
Box 3 may show the holding period the broker calculated. Verify against confirmation dates; broker acquisition dates can be wrong for -origin lots. Correct the character on Form 8949 with confirmation proof when needed. Basis should equal already included in wages so you are not taxing the same dollars twice.
State long-term preferences vary — some states tax as . Dividends while holding are investment income on 1099-DIV, separate from on sale. Selling exactly on the one-year anniversary requires careful day counting; many filers wait extra days for clarity before treating a sale as long-term.
What to check on your end
- per lot vs sale date (more than one year?).
- Box 3 short-term vs long-term label.
- Basis equals per lot on Form 8949.
- Which lot your broker sold if multiple vests are in one account.
- Federal long-term rate bracket at your income level.
- State treatment of long-term vs short-term gains.
- Whether earlier partial sales left mixed lots remaining.
Counting holding period from RSU grant date
What to pull from your files
- confirmations with delivery dates and .
- Brokerage lot detail report.
- for the sale — Boxes 1b–1e and Box 3.
- Form 8949 short-term vs long-term sections.
- Schedule D summary.
Two vest lots, one long-term and one short-term sale year
Illustration only, not your tax situation.
Questions people ask
- When does long-term holding start for RSUs?
- Generally at when shares deliver and hits your , not at grant. Count from that delivery date to the sale date for federal holding period tests.
- Is RSU vest income long-term capital gain?
- No. is ordinary wage income. Only price change after may be , long-term if holding period rules are met.
- How do I report long-term RSU gain?
- Form 8949 and Schedule D with basis. Long-term transactions go in the long-term section when the holding period qualifies. See the Form 8949 walkthrough for line detail.
- Does long-term mean 15% federal tax?
- Long-term gains may use preferential rates when you qualify, but the rate depends on taxable income and filing status. Use IRS rate schedules — do not assume one rate.
- Multiple vests — each lot separate?
- Yes. Each and is usually a separate lot for basis and holding period. Broker FIFO may not sell the lot you intended.
When a CPA is worth it
- Corporate actions, mergers, or spinoffs affected your lots.
- Large sale straddling the one-year anniversary with multiple lots.
- or NIIT in the sale year.
- Broker will not correct wrong holding period on .
Sources and notes
Primary tax claims on this page are supported by the official and secondary sources below. Broker and software links describe reporting mechanics — confirm rules against IRS or state guidance.
Holding period from vest delivery for long-term capital gain on RSU sales.
- IRS Publication 550 — Investment Income and Expenses
Internal Revenue Service · Official
Wash sale rules, capital gain and loss reporting, and basis adjustments on stock sales.
- About Schedule D (Form 1040) — Capital Gains and Losses
Internal Revenue Service · Official
Summary of capital gains and losses from Form 8949.
- Restricted Stock Units and Awards — Tax at delivery and on sale
Charles Schwab (Equity Award Center) · Brokerage explainer
Describes two tax events (delivery/vest and sale), W-2 reporting, and capital gain/loss on sale.
Related calculators
Related pages
- RSU Ordinary Income vs Capital Gains
Most RSU tax at vest is ordinary income on your W-2; only price changes after vest may create capital gain or loss.
- Are RSUs Taxed Twice?
Vest income and later sales can both show up on tax forms — that is not always double tax on the same dollars.
- Schedule D for RSU Sales
RSU sales go on Form 8949 and Schedule D with basis tied to vest wage income — separate from W-2 vest reporting but connected through cost basis.
- Should I Sell RSUs Immediately After Vesting?
Selling right after vest is a personal finance choice — tax at vest usually already happened; the sale may mostly affect capital gain or loss.
For learning, not filing
VestingTax.com is not a CPA firm or tax preparer. Grants, employers, and states all differ. Use the cited IRS and state sources above, your own documents, and a qualified tax professional before you make decisions from this guide.