Beneficiary RMDs – basis
I have a beneficiary IRA and used its cash to buy a mutual fund several years ago. The mutual fund lost about half its value by time I transferred shares to my investment account in a RMD. I sold the shares in Dec 2012. Must I use the deflated market value at time of RMD as basis or is there some way I can reflect this loss on my income tax return?
Permalink Submitted by Alan - IRA critic on Sat, 2013-03-30 21:39
The basis for the shares when you sold them in the taxable account is their value at the time of distribution from the IRA. You cannot deduct the loss the shares incurred while still in the IRA, only additional loss that may have occurred after the distribution.