MRD -shares in kind

I have taken shares in kind as a portion of my MRD. Where do I report the fair market value of these shares on my 2013 tax form and how do I do it?



The 1099R issued will show the value of the shares lumped with any cash distributed, so 1040 reporting is no different than if you received all cash. However, you do need to determine the value of each share distributed which the broker receiving the shares will want to know for 1099B reporting when you sell the shares.



Thank you.



Also, make sure to confirm that the fair market value (FMV) reported on the 1099R is accurate.  If the shares were of highly liquid and regularly traded securities then the FMV will likely be correct.  If the distribution was of illiquid non-traded alternative investment shares, then quite often the FMV will be incorrect due to the industry habit of reporting net asset value (NAV) or cost basis in place of FMV for such assets.  If they report a NAV which is higher or lower than FMV, you’ll either pay too much or too little tax.



Thank you. The FMV is accurate.



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