Does an RSU vest count as a wash sale purchase?

A vest that delivers shares of the same stock within 30 days of your loss sale can trigger wash sale treatment. The shares are substantially identical even though you received them from compensation.

Are RSU wash sales taxed twice with W-2 income?

No. Vest FMV is wage income. Wash sale rules only defer capital loss on the sale. They do not change W-2 reporting.

Where do I see wash sale adjustments?

Form 1099-B Box 1g often shows disallowed loss. Brokers may also provide a wash sale summary. Form 8949 carries the adjustment to Schedule D.

Can I avoid a wash sale by waiting to sell?

Selling more than 30 days after a vest or purchase, and not buying again within 30 days after the loss sale, avoids wash sale treatment on that transaction pair. Plan around vest calendar dates.

Does sell-to-cover at vest cause wash sales?

Sell-to-cover is a sale at vest, not a purchase. It does not replace shares for wash sale purposes on a different loss sale, though it has its own gain/loss math.

What if I buy company stock in ESPP during the window?

ESPP shares of the same issuer are generally substantially identical. ESPP purchases can trigger wash sales on employer stock loss sales.

Do wash sales apply to RSU shares in a 401(k)?

Wash sale tracking in this guide focuses on taxable brokerage accounts. Purchases inside IRAs or 401(k) plans involve separate rules; ask a professional if you trade employer stock in multiple account types.

How long is the wash sale window?

Generally 30 days before and 30 days after the loss sale, including the sale date. Some filers use a 61-day calendar to scan vest and purchase dates.

Is the deferred loss gone forever?

Usually it moves to replacement share basis. You may recognize it when you sell those shares later, subject to later wash sales or gain/loss rules.

Which guide covers 1099-B boxes for RSU sales?

See the 1099-B boxes for equity sales guide on this site for Box 1g and other fields. Pair it with the cost basis calculator for RSU lot basis.

RSU Wash Sale Rules | Loss Sales & New Vests

You sold company stock at a loss after vesting RSUs (or bought shares around the same time) and your 1099-B shows a wash sale adjustment, or you wonder whether repurchasing shares blocks the loss. You want to know how wash sales interact with RSU basis and vest income.

Start here

Wash sale rules can defer a capital loss when you sell shares at a loss and buy substantially identical stock within 30 days before or after the sale. shares you buy in the open market are generally the same security as shares you sell. A new that delivers shares can count as a purchase for wash sale purposes. wage income is separate from capital loss treatment on sale. Check Box 1g and your broker wash sale report before filing Schedule D.

What you need before using this

for the sale at a loss, including Box 1g wash sale adjustment if present.
Dates of vests within 61 days of the sale (30 days before through 30 days after).
Dates of open market purchases of the same company stock in that window.
confirmations showing basis for each lot sold.
Broker gain/loss report with wash sale detail if provided.

Wash sale rules have exceptions and related-party nuances. This page covers common employee taxable account scenarios, not full IRC section 1091 analysis.

Why this happens

Wash sale rules under IRC section 1091 prevent you from claiming an immediate capital loss when you sell stock at a loss but maintain exposure by repurchasing substantially identical stock too soon.

The loss is generally deferred by adding the disallowed loss to the basis of the replacement shares instead of disappearing forever. You may claim it when you eventually sell the replacement lot under normal gain/loss rules.

vests deliver new shares of the same company stock. If a lands within the 61-day window around your loss sale, the IRS may treat the newly delivered shares as replacement stock for wash sale analysis even though you did not choose to buy in the market.

Shares purchased in the open market, through , or acquired from option exercise of the same issuer can also trigger wash sales if they are substantially identical to the shares sold at a loss.

income on your is wage tax on at . Wash sale rules apply to capital loss on sale, not to recharacterizing wages. You can have wage income from a and a deferred capital loss on a sale of a different lot in the same month.

Brokers track many wash sales automatically and report adjustments on Box 1g. You still reconcile to Form 8949. Broker logic may not know which lot was -origin vs market purchase unless you use specific identification where allowed.

at is a sale, not a purchase. It does not create wash sale replacement shares for a separate loss sale you make later, though it produces its own gain/loss reporting.

Buying a broad tech ETF after selling your employer stock at a loss usually does not trigger a wash sale because the ETF is not substantially identical to single-company stock. Selling employer stock and buying a different company's stock is also generally not a wash sale.

Loss sales of -origin shares use as basis. Wash sale adjustments change which lot carries the deferred loss, not your original wage reporting.

Multiple loss sales and multiple vests in one year require lot-level tracking. Aggregated lines hide the dates you need for wash sale tests.

Short-term vs long-term character of the deferred loss follows the replacement shares' holding period rules. Mixed lot sales confuse filers who rely on tax software defaults.

Tax-loss harvesting strategies on employer stock need extra care near dates. A planned loss sale the week before a scheduled cliff can defer the loss if the cliff delivers replacement shares.

Wash sale rules apply to taxable accounts. IRAs and other tax-advantaged accounts have separate wash sale and related-party purchase rules beyond this page.

Form 8949 adjustment codes may be needed when broker-reported wash sales differ from your lot records. Instructions for Form 8949 describe reporting when basis was reported to the IRS.

What to check

Sale date and all purchase/ dates within 30 days before and after.
Box 1g wash sale loss disallowed amount.
Whether a cliff or quarterly fell inside the window.
Whether you repurchased shares manually in the brokerage account.
Basis on replacement shares after wash sale adjustment.
Short-term vs long-term on Form 8949 for each line.
Software import: did it carry Box 1g adjustments to Form 8949?
Separate lots for vests vs market purchases vs DRIP shares.
Whether loss sale used specific lot identification vs FIFO default.

Ignoring a cliff vest when harvesting a loss on old RSU shares

You sell last year's shares at a loss and a new delivers fresh shares two weeks later. The loss may be deferred under wash sale rules even though the felt like compensation, not a purchase decision.

What to check in your documents

all pages including supplemental wash sale report.
confirmations dated near the loss sale.
Trade confirms for open market buys of company stock.
Form 8949 draft from tax software.
Prior-year Schedule D if carryover losses interact with current sales.

Loss sale two weeks before a quarterly RSU vest

Illustration only, not your tax situation.

Sam sold 100 shares acquired from a 2024 at a $2,000 loss on March 10 to offset other gains. Sam's employer delivered 50 new shares on March 24 from a scheduled quarterly . The broker flagged a wash sale on Sam's Box 1g, deferring the $2,000 loss and adding it to the basis of the replacement shares. Sam's still includes the March 24 as wages. Sam reports the sale and wash adjustment on Form 8949 using broker data, then tracks adjusted basis on the new lot for a future sale.

Questions people ask

Does an RSU vest count as a wash sale purchase?: A that delivers shares of the same stock within 30 days of your loss sale can trigger wash sale treatment. The shares are substantially identical even though you received them from compensation.
Are RSU wash sales taxed twice with W-2 income?: No. is wage income. Wash sale rules only defer capital loss on the sale. They do not change reporting.
Where do I see wash sale adjustments?: Box 1g often shows disallowed loss. Brokers may also provide a wash sale summary. Form 8949 carries the adjustment to Schedule D.
Can I avoid a wash sale by waiting to sell?: Selling more than 30 days after a or purchase, and not buying again within 30 days after the loss sale, avoids wash sale treatment on that transaction pair. Plan around calendar dates.
Does sell-to-cover at vest cause wash sales?: is a sale at , not a purchase. It does not replace shares for wash sale purposes on a different loss sale, though it has its own gain/loss math.
What if I buy company stock in ESPP during the window?: shares of the same issuer are generally substantially identical. purchases can trigger wash sales on employer stock loss sales.
Do wash sales apply to RSU shares in a 401(k)?: Wash sale tracking in this guide focuses on taxable brokerage accounts. Purchases inside IRAs or 401(k) plans involve separate rules; ask a professional if you trade employer stock in multiple account types.
How long is the wash sale window?: Generally 30 days before and 30 days after the loss sale, including the sale date. Some filers use a 61-day calendar to scan and purchase dates.
Is the deferred loss gone forever?: Usually it moves to replacement share basis. You may recognize it when you sell those shares later, subject to later wash sales or gain/loss rules.
Which guide covers 1099-B boxes for RSU sales?: See the boxes for equity sales guide on this site for Box 1g and other fields. Pair it with the calculator for lot basis.

When to get help from a tax pro

Multiple wash sales across , , and option shares in one year.
Wash sale involving IRA or spouse's purchase of same stock.
Broker disagrees with your lot identification records.
Large deferred loss and planned departure from employer with final .

Related calculators

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.

Wash sale deferral of capital losses when RSU vests or repurchases occur within 30-day window.

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 Form 1099-B — Proceeds from Broker and Barter Exchange Transactions
Internal Revenue Service · Official
Broker reporting of sales proceeds and basis; basis on 1099-B may be incomplete for equity-compensation shares.
Instructions for Form 8949 — Sales and Other Dispositions of Capital Assets
Internal Revenue Service · Official
How to report sales when broker-reported basis is incorrect, including adjustment codes.

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.

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Wash sale rules when you sell employer RSU stock at a loss