Tax consequences of liquidating ira
Although a lower value can mean lower taxes, it’s also possible that the value of your in-kind distribution may not meet the minimum.
You might need to move additional assets, or even withdraw some of your RMD in cash, in order to make up the difference. “When you use an in-kind RMD, your basis resets,” said Luber.
Fw-300 #ya-qn-sort h2 /* Breadcrumb */ #ya-question-breadcrumb #ya-question-breadcrumb i #ya-question-breadcrumb a #bc .ya-q-full-text, .ya-q-text #ya-question-detail h1 html[lang="zh-Hant-TW"] .ya-q-full-text, html[lang="zh-Hant-TW"] .ya-q-text, html[lang="zh-Hant-HK"] .ya-q-full-text, html[lang="zh-Hant-HK"] .ya-q-text html[lang="zh-Hant-TW"] #ya-question-detail h1, html[lang="zh-Hant-HK"] #ya-question-detail h1 /* Trending Now */ /* Center Rail */ #ya-center-rail .profile-banner-default .ya-ba-title #Stencil . Bgc-lgr .tupwrap .comment-text /* Right Rail */ #Stencil . “The IRS sees the value at transfer as your new basis.” Suppose you originally bought shares of a stock for ,000. With the in-kind RMD, you’ll pay taxes on the higher amount, but it also becomes your new basis.If you sell the shares for ,000 later on, you’ll only pay taxes on the ,000 gained since your new basis.You pay taxes on the value of the assets you transfer.Some retirees prefer to use in-kind transfers during a stock market downturn because you’re taxed on the value of the assets you transfer, Luber explained.
The tax consequences of distributions by an S corporation to a shareholder depend on the shareholder’s basis in the S corporation stock.