Double taxing IRA distributions
I take this question to be answered (http://cnnfn.cnn.com/2000/08/23/pensions/retire_slott/) but am asking anyway: For a nonspouse IRA inherited by a North Carolina taxpayer, with New York estate tax paid and no Federal estate tax, can the NC taxpayer use the NY estate tax as a deduction or an adjustment to basis?
Permalink Submitted by Alan - IRA critic on Wed, 2013-04-10 02:18
No. The IRD deduction can only be used for federal estate taxes paid on the decedent’s estate. And IRA basis can only arise from non deductible contributions or rollover of after tax qualified plan distributions to the IRA.