Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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
Print the post Back To Top
No. of Recommendations: 6
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
Print the post Back To Top
No. of Recommendations: 0
Thanks very much, Ira.
Print the post Back To Top
Advertisement