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.
Start here
What you need before using this
- 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.
- Your filing status and rough taxable income for rate planning.
Holding period and rate rules follow IRS publications for your tax year. Rates are not fixed on this page.
Why this happens
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.
Selling within one year of typically produces short-term or loss — taxed at rates on your return 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.
does not start the holding clock for standard you did not own at grant. Employees sometimes wait from grant while shares were unvested — those months do not count toward long-term treatment.
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 default in brokers may sell your newest lot first unless you use specific identification where permitted. Lot choice affects short-term vs long-term character.
Dividends received while holding are investment income on 1099-DIV, separate from on sale.
Box 3 may show holding period the broker calculated. Verify against — broker data can be wrong for origin lots.
State long-term preferences vary. Some states tax as .
Selling exactly on the one-year anniversary: count days carefully — IRS instructions define holding period tests; many filers wait extra days for clarity.
Stock splits and spinoffs adjust share count and basis but do not restart -date holding period from the original event — corporate action rules apply.
Inherited shares are rare in employee plans; this page assumes you vested as an employee.
Charitable donation of long-held shares may use different deduction rules than sale — see the charitable donation guide.
Estimated tax on long-term gain still matters in the sale year even if rates are lower than wages.
What to check
- per lot vs sale date (more than 365 days?).
- Box 3 short-term vs long-term label.
- Basis equals per lot on Form 8949.
- Which lot your broker sold if multiple vests in one account.
- Federal rate bracket for long-term gains at your income level.
- State treatment of long-term vs short-term.
- Whether partial sales earlier reset lots remaining.
- NIIT on net investment income if income exceeds thresholds.
Counting holding period from RSU grant date
What to check in your documents
- confirmations with delivery dates.
- Brokerage lot detail report.
- for the sale.
- 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 date to 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.
- One year from vest or one year from sell-to-cover?
- From delivery for shares you received net. is a separate small sale at with its own holding period on that sold slice.
- 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 holding period qualifies.
- 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 or your preparer — do not assume one rate.
- Multiple vests — each lot separate?
- Yes. Each and is usually a separate lot for basis and holding period.
- Can I specific-identify which RSU lot I sold?
- If your broker supports it and IRS lot identification rules are met. Otherwise FIFO or broker defaults may apply.
- Long-term gain but 1099-B says short-term?
- Broker may use wrong acquisition date. Correct on Form 8949 with confirmation proof.
- Hold past one year or sell at vest?
- Tax planning only — wage tax is the same either way. Holding adds market risk for a chance at long-term gain treatment on post- appreciation.
- Which guide for short-term RSU sales?
- Same basis rules — short-term sales within one year of use rates on the gain portion. See vs guide.
When to get help from a tax pro
- Corporate actions, mergers, or spinoffs affected your lots.
- Large sale straddling one-year anniversary with multiple lots.
- or NIIT in the sale year.
- Broker will not correct wrong holding period on .
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.
- 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.
- 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.
- RSU Capital Loss Below Vest Price
Vest tax and sale loss are separate events — capital loss rules apply to the sale below vest basis, not to reversing W-2 wages.
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.
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.