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Financial Planning / Tax Strategies


Subject:  Re: Tax handling of gifts under the annual exemp Date:  3/25/2014  2:35 PM
Author:  JeanDavid Number:  120574 of 130142

In your case, from my understanding, in an IRA, normal or ROTH, for tax purposes the cost basis is irrelevant.

But the cost basis of shares entering the Margin account (taxable) is very relevant. Not the original price of those shares, but the price at the moment of transfer. And this matters immediately to the IRA because it affects whether I have taken the entire MDR out of the IRA. And it matters subsequently to the Margin account if I ever sell that stock.
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