On Fri, 6 Oct 2023 23:37:39 EDT, Victor Roberts
<
vicroberts@earthlink.net> wrote:
In 2008, nine years after retirement, I removed my assets from my
prior employers retirement plan. Most of the assets were rolled over
tax-free into an IRA but the company stock was transferred to me. I
paid income tax on the value of that transaction as determined by the >company.
The company provided me with the Cost Basis for the stocks transferred
to me, but I am wondering if the fact that I paid income tax on the >distribution increased the basis, perhaps to the value of the shares
on the day of distribution.
(I have left this unresolved for years since I had assumed when I die
the cost basis stock would be bumped up to the value on the day of my
death, but I've become interested in determing the cost basis now.)
After I posted this I realized that I had paid income taxes only on
the portion of the distribution that was related to my original
tax-free contributions.
I did not pay any taxes on the net unrealized value so the basis would
not have changed.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)