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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Were the stocks sold and then the funds withdrawn by the account holder or were the sales proceeds left inside of the IRA account?
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Yes, the funds that were withdrawn by the account holder will be taxable as ordinary income in the year the funds were withdrawn.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.
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Thank you Slfsr