My wife and I have just inherited an IRA from her father (co-beneficiaries)
and I was wondering about how to take distributions. He had already begun
taking money out and his portfolio consists of stock , mutual funds and
Strips. I have been told you can take stock out of the account equal to the
RMD then pay normal income on the distribution. If this is correct, what is
the basis of the stock when you sell it later?

TIA,
Monte

In article <_fK8b.14192$KW1.10903[at]twister.austin.rr.com> , "msmap"
<msmap[at]houston.rr.com> writes:

- quote -

Unless your father-in-law had basis, you have none. You might check his
old tax returns to see if he had been filing a Form 8606 with his tax return.

You may continue to take the distributions and pay regular income tax on
the distributions (assuming there is no basis) you take each year. If there
is basis, there is a formula for figuring out the taxable portion.


"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

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