@NCperson wrote:
<<And that would be my new cost basis>>
isn't your new cost basis zero? this is an RMD from an IRA, right?
The taxpayer will get a 1099-R and pay regular income tax on the cash value of the withdrawal as of the day of the withdrawal. It doesn't matter if the withdrawal is made in cash or in securities. The cash value on which income tax was paid becomes the basis of the securities.
