You cannot take a loss within an IRA. IRA RMD's must be taken in cash or cash equivalent. IF the IRA custodian will even allow stock transfer (ask the custodian) then the cash value, for RMD purposes would be the stock selling price at the time of the transfer (the same as if you simply sold the stock withing the IRA and distributed the proceeds as your RMD, or part of the RMD - that is the value that the IRA custodian would report on the 1099-R. The new basis for the stock in the taxable account would be that same value. This would be no different that simply selling the stock in the IRA and using the proceeds to purchase stock in the taxable account. Since gains and losses within an IRA are not reportable, the original cost basis is meaningless once the stock is in an IRA.
User @dmertz - do you concur?
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
