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Re: Shares - restricted stock units

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I have some restricted stock units that vested in sept 2016. I have not sold theses shares but my understanding is they are treated like income. Is this correct and if so what section of the tax return form online do I submit the figure as gross income. Thanks
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ATO Certified

Devotee

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Hi @Harps12,

 

It's definitely worth investigating whether your restricted stock units are part of an overall employee share scheme, as this will help you figure out how to report the income on your return.

 

You should have received a statement when your stock units vested, and this should contain some useful information like the date you acquired the shares, market value and so on. If you're still not sure how to report this information on your return, you can phone us to ask for more tailored information. Phone 13 28 61 between 8:00am and 6:00pm, Monday to Friday and select option 5, then option 4 to ask for more information. Have your statement and any other document about the units handy when you phone in case we need some more information.

 

Thanks!

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Superuser Registered Tax Practitioner

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Hi Harps12

 

Until you sell these shares you report any dividends received at item '11 Dividends 2017'. And if you received the shares under 'employee share schemes (ESS)' you need to report them at item '12 Employee share schemes 2017'.

 

One Stop tax
Tax Return and Taxback Specialist
www.onestoptax.com.au

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Thanks. I have not sold them. But they vested and is now classed as income. I'm not sure if it's employment share scheme. They just call them restricted stock units . I just wasn't sure if u add them early in the tax form or later like section 12 like u instruct.

Superuser Registered Tax Practitioner

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@Harps12 wrote:
Thanks. I have not sold them. But they vested and is now classed as income. I'm not sure if it's employment share scheme. They just call them restricted stock units . I just wasn't sure if u add them early in the tax form or later like section 12 like u instruct.

In this case, tax will be payable on the difference between the market value of the shares less any amount paid.Your employer should advise you how it needs to be reported on your tax return but generally it is treated as discount and reported at item 12.

 

One Stop tax
Tax Return and Taxback Specialist
www.onestoptax.com.au

 

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Thanks. I'll chase them up
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ATO Certified

Devotee

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Hi @Harps12,

 

It's definitely worth investigating whether your restricted stock units are part of an overall employee share scheme, as this will help you figure out how to report the income on your return.

 

You should have received a statement when your stock units vested, and this should contain some useful information like the date you acquired the shares, market value and so on. If you're still not sure how to report this information on your return, you can phone us to ask for more tailored information. Phone 13 28 61 between 8:00am and 6:00pm, Monday to Friday and select option 5, then option 4 to ask for more information. Have your statement and any other document about the units handy when you phone in case we need some more information.

 

Thanks!

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