The Persona (The "Hero"):
"Mark, a Senior Software Engineer (L5) at Google. Between his base salary and a large refresher grant of GSUs (Google Stock Units) that recently vested, Mark’s total compensation crossed the $350k threshold. He sold a portion of his shares in November to diversify into an index fund and cover a property tax bill."
The Challenge (The "Villain"):
"When tax season arrived, Mark imported his 1099-B from Charles Schwab into a popular retail tax app. The app showed a $0 cost basis for his Google shares. Because the software lacked equity intelligence, it treated his entire $60,000 sale as a capital gain. Mark was hit with a $12,000 tax bill on 'gains' he had already paid income tax on when the shares originally vested. He was effectively being taxed twice—once as income, and once as profit."
The Analysis (The "Insight"):
"Rally’s engine performed a 'Basis Gap' audit. While brokerages are required to report the sale price, they often omit the supplemental basis (the value of the stock when it vested) on the 1099-B. Rally’s algorithm scanned Mark’s Google W-2 and identified that the taxes on those shares had already been withheld and reported as ordinary income. We calculated that his 'actual' basis was $142.50 per share (the FMV at vest), not the $0 reported by the brokerage."
The Solution (The "Action"):
"Rally automatically generated a Form 8949 with a 'Code B' adjustment. This isn't just a simple entry; it’s a technical tax filing that reconciles what the brokerage told the IRS ($0) with the truth (Mark’s vested price). By automating this adjustment, Rally corrected the narrative before the IRS could flag it. Mark didn't have to manually calculate vest dates, FMV, or share lots; Rally's engine synced the data and applied the fix instantly."
The Rally Difference:
Feature | Standard Tax Software | A Traditional CPA | Rally |
|---|---|---|---|
Cost Basis Audit | Blindly accepts 1099-B | Manual & prone to error | Automated W-2/1099 Cross-check |
GSU/RSU Logic | None (Generic) | Varies by expertise | Native Equity Intelligence |
Speed | Fast but inaccurate | 2–3 weeks | Real-time Adjustments |
Cost | 120 | $1,500+ | Fraction of the cost |
The Result (The "Win"):
"Mark’s $12,000 tax liability was wiped out instantly. He paid $0 in capital gains taxes on that sale because Rally proved he hadn't actually made a 'gain' above his vested price. Mark kept his $12k and spent 10 minutes on his taxes instead of 10 hours fighting with spreadsheets."
Why This Happened: The "Wash-Sale" Caveat
"Rally also checked for 'Wash Sales'—a common trap for Googlers. If Mark had bought shares within 30 days of his sale (including through a new vest), his loss would have been disallowed. Rally’s engine confirmed no wash-sale overlap existed, ensuring his cost-basis adjustment was bulletproof."
