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Author: sheilaoliver Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121217  
Subject: Cost Basis Question. Date: 1/5/2011 11:24 AM
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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,
sheilao
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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 111881 of 121217
Subject: Re: Cost Basis Question. Date: 1/5/2011 11:34 AM
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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?


The cost basis is the value at the time of transfer. The holding period also begins at that time.

Ira

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Author: sheilaoliver Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 111884 of 121217
Subject: Re: Cost Basis Question. Date: 1/6/2011 8:56 AM
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Thanks very much, Ira.

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