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Merlo
Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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IRA BDA Account. For a General Answer to a sale, are the sale

Resolved Question:

IRA BDA Account. For a General Answer to a sale, are the sale proceeds Taxable as personal income?
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello Slfsr,

 

Are you asking if stock sales made inside of an inherited IRA are subject to tax?

 

Were the stocks sold and then the funds withdrawn by the account holder or were the sales proceeds left inside of the IRA account?

 

 

Customer: replied 6 years ago.
Question# XXXXX YES, Question# XXXXX The funds were withdrawn by the account holder.
Expert:  Merlo replied 6 years ago.

Hello again Slfsr,

 

Thank you for the clarification.

 

Yes, the funds that were withdrawn by the account holder will be taxable as ordinary income in the year the funds were withdrawn. The custodian firm of the IRA should send that person a 1099-R form to report the amount of the distribution. Those are then reported on line 15b of your Form 1040.

 

If this was helpful please press the Accept button. Positive feedback is also appreciated.

 

Thank you Slfsr

 

 

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