How do I update the cost basis on stocks moved from IRA to another account as part of RMD

Elizabeth

When I take stock as part of my RMD, the system keeps the original cost basis.   How do I update the cost basis on these stocks?

Jim_Harman

Consult your tax advisor, but one way would be to Sell the stocks in the IRA using the fair market value on the transfer date, intitiate a transfer from the receiving account to move the proceeds, and Buy the stocks in the receiving account at the same price. That will establish the new cost basis.

Because the sale is in a tax deferred account, any capital gain or loss on the sale will be excluded from your tax reports. It is important to initiate the cash transfer in the receiving account for Quicken to track the RMD properly.

J_Mike

Agree with reco@Jim_Harman of  @Jim_Harman

Another advantage of this procedure is that Quicken can recognize the transfer of cash out of a retirement account as a taxable event and thus correctly report this in the tax reports (and in the Tax Planner). Quicken does not recognize transfer of shares as a taxable event.

Jim_Harman

Consult your tax advisor, but one way would be to Sell the stocks in the IRA using the fair market value on the transfer date, intitiate a transfer from the receiving account to move the proceeds, and Buy the stocks in the receiving account at the same price. That will establish the new cost basis.

Because the sale is in a tax deferred account, any capital gain or loss on the sale will be excluded from your tax reports. It is important to initiate the cash transfer in the receiving account for Quicken to track the RMD properly.

J_Mike

Agree with reco@Jim_Harman of  @Jim_Harman

Another advantage of this procedure is that Quicken can recognize the transfer of cash out of a retirement account as a taxable event and thus correctly report this in the tax reports (and in the Tax Planner). Quicken does not recognize transfer of shares as a taxable event.