Transfer shares from conventional IRA to for RMD to a brokerage account with basis step-up

Unknown

I have Quicken 2016 Premier, Version R14.1 (Build:  25.1.14.9).  As part of the RMD from a conventional IRA account, I transferred shares in a security from the IRA to a brokerage account.  I want to record the transaction in Quicken, however, I do not want to carry over all the cost basis calculations.  This is because the cost basis in the brokerage account should be the latest cost of the security at the time of transfer.  How do I record this type of transaction?

NotACPA

Shrs removed in the IRA, Shrs Added in the brokerage acct.

J_Mike

The simplest procedure is to sell the shares in the IRA account, transfer the cash, and then repurchase the shares in the destination account.
This takes care of 'adjusting the basis and acquisition date(s) for tax purposes.
Alos, the tax features will recognize the distribution as a taxable event. The tax features do not recognize transferring shares as taxable.

Unknown

JM said:

The simplest procedure is to sell the shares in the IRA account, transfer the cash, and then repurchase the shares in the destination account.
This takes care of 'adjusting the basis and acquisition date(s) for tax purposes.
Alos, the tax features will recognize the distribution as a taxable event. The tax features do not recognize transferring shares as taxable.

And you MUST do this in two transactions.

You CAN NOT just use a SELLX transaction.

You MUST SELL the shares, then Transfer Cash Out of Account.

It's the Transfer Cash Out of Account transaction type that triggers the dollar amount as a taxable event in Quicken.

splasher

JM said:

The simplest procedure is to sell the shares in the IRA account, transfer the cash, and then repurchase the shares in the destination account.
This takes care of 'adjusting the basis and acquisition date(s) for tax purposes.
Alos, the tax features will recognize the distribution as a taxable event. The tax features do not recognize transferring shares as taxable.

I just did this myself and the sell-transfer$-buy was the cleanest way to get it done and have Quicken recognize the tax consequences.

Unknown

Thank you, everyone!

Unknown

Phil said:

Thank you, everyone!

Phil...just make sure you EDIT your IRA account, and then click on the Tax Schedule box at the bottom of that screen.

You should have "Transfers Out: 1099-R:Total IRA gross distrib" selected from the dropdown.