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system
what cost basis do i report on the 1099?
user
you wouldn't fill out a 1099, your employer would or possibly whoever manages the stock account.   the 1099-b imported from e-trade says i had a transaction with sell price ~$4,500.   yes.  you sold ~$4500 of stock to pay income taxes.  both the cost basis and the sale price would probably be ~$4500, so no capital gain.  this is because you received and sold the stock at the same time.  if they waited a little, you could have had a small gain or loss.   the remainder of the stock has a cost basis of ~$5500.   there are at least two transactions here.   in the future you may sell the remaining stock.  it has a cost basis of ~$5500.  sale price of course unknown until then.  you may break that into different pieces.  so you might sell $500 of cost basis for $1000 with a ~$500 capital gain.  then later sell the remainder for $15,000 for a capital gain of ~$10,000.
assistant