Basis of Net Unrealized Appreciation


L

Luke

What is the basis of the NUA of the stock
for the following 1099-R :

Box 1 $155,000
Box 2 $ 46,000
Box 2b Total Distribution
Box 3 0
Box 4 $ 9,100
Box 5 $ 17,000
Box 6 $ 91,200
Box 7 7
 
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F

Frank S. Duke, Jr.

Luke at (e-mail address removed)
wrote on 4/25/04 10:50 PM:
What is the basis of the NUA of the stock
for the following 1099-R :

Box 1 $155,000
Box 2 $ 46,000
Box 2b Total Distribution
Box 3 0
Box 4 $ 9,100
Box 5 $ 17,000
Box 6 $ 91,200
Box 7 7
The taxable amount is $46,000. If you paid tax on that
amount, that would normally be your basis in the stock but
in this case, you also had $17,000 in employee contributions
so you add that amount to total $63,000. It looks like the
employer withheld $9,100 in federal tax so you would not get
hit so hard on your tax return but that has nothing to do
with your basis.

The employer reported $91,200 in NUA so it seems like $800
is missing. Are you sure your numbers are correct?

If you had rolled over $46,000 of this stock into an IRA
within 60 days of distribution, you might have been able to
avoid paying current tax on any of it. I assume you are
over age 59 1/2 because it shows as code 7, normal
distribution.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA
 

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