How do I update the cost basis on stocks moved from IRA to another account as part of RMD
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Elizabeth
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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?
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Best Answers
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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.QWin Premier subscription6 -
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.QWin & QMac (Deluxe) Subscription
Quicken user since 19917
Answers
-
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.QWin Premier subscription6 -
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.QWin & QMac (Deluxe) Subscription
Quicken user since 19917
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