Beneficiary RMDs – basis
I have a beneficiary IRA and bought 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 value as basis or is there some way I can reflect this loss on my income tax return?
Permalink Submitted by mk foss on Sat, 2013-03-30 21:41
No losses are generated from losses in IRA investments. When you transfer assets from an IRA as a distribution the basis and holding period are determined as of the date of the distribution. The IRAs cost and acquistion date are no longer relevant.