Regardless of what I suggested earlier ---
If you remove stock in-kind from an IRA, the basis is the value on the day it comes out of the IRA.
It shouldn't matter if you are taking it out as a regular distribution or a return of excess.
It shouldn't matter if the IRA is a Roth IRA or a Traditional IRA.
If you take an excess contribution out in cash, and negative earnings reduce your amount returned to you, the negative earnings are gone, You can't deduct it as a loss.
The withdrawal of excess in-kind can also result in a loss, which would not be deductible.
Just as a matter of fairness, the treatment of a withdrawal in-kind must be similar to a withdrawal in cash.
@taxes4739
