Basis of Net Unrealized Appreciation

Discussion in 'Tax' started by Luke, Apr 26, 2004.

  1. Luke

    Luke Guest

    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
    Luke, Apr 26, 2004
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  2. Luke at
    wrote on 4/25/04 10:50 PM:
    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

    All freely provided advice guarantee correct or double your
    money back

    Frank S. Duke, Jr. CPA
    Cincinnati, OH USA
    Frank S. Duke, Jr., Apr 27, 2004
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