capital loss on inherited IRA


E

Eric

I inherited an IRA from my mother several years ago. This
year (2004), I took my minimum distribution (around $5000).
My broker rolled over assets from the IRA into my trading
account. Now, when I look at my trading account, I see the
assets with the original purchase date and an unrealized
loss of $15000. Does this seem correct ? I didn't think I
could take the loss, should I now sell the asset out of my
trading account...Any Comment ?
 
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P

Phil Marti

I inherited an IRA from my mother several years ago. This
year (2004), I took my minimum distribution (around $5000).
My broker rolled over assets from the IRA into my trading
account.
Was this assets worth $5000? IOW, did you take the
distribution as a transfer to your regular investment
account? (Not a problem, BTW) If this transfer was in
addition to the $5,000, you had more than a $5,000
distribution.
Now, when I look at my trading account, I see the
assets with the original purchase date and an unrealized
loss of $15000. Does this seem correct ?
It may or may not be, but it's irrelevant to you. If stocks
were transferred from the IRA to your regular account, your
holding period begins on the date of the transfer and your
basis is the value as of the date of transfer.

Phil Marti
Topeka, KS
 
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D

D. Stussy

Eric said:
I inherited an IRA from my mother several years ago. This
year (2004), I took my minimum distribution (around $5000).
My broker rolled over assets from the IRA into my trading
account. Now, when I look at my trading account, I see the
assets with the original purchase date and an unrealized
loss of $15000. Does this seem correct ? I didn't think I
could take the loss, should I now sell the asset out of my
trading account...Any Comment ?
No "gain or loss" is recognized in an IRA.
 

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