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Financial Planning / Tax Strategies


Subject:  Cost Basis Question. Date:  1/5/2011  11:24 AM
Author:  sheilaoliver Number:  111880 of 127283

Hello: This is in regard to determining the cost basis of a sold stock - with a twist. Here is the scenario:
1 Stock is bought in a traditional IRA account.
2 Stock is transferred to a taxable account via a Required Minimum Distribution.
3 Stock is later sold in taxable account.

At what point is the cost basis determined for income tax purposes? At price originally paid in the IRA or the price which it arrives in the taxable account?

Thank you very much,
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