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Thank you for the response. I just found out this afternoon that the reason the proceeds are not taxable is the cost basis was higher than the proceeds (business equipment and property sold for a loss).

So the IRA only would provide a benefit when he has earned income? He's always been self-employed, so there's rarely been any taxable earned income to benefit from an IRA. It sounds like he could put his capital/proceeds in a non tax-deferred account or brokerage without a downside tax-wise.

Thanks for all your help.
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