I made my RMD withdrawal on 2/14/2020 and did a 'transfer-in-kind' of mutual fund shares with a value of $40,000 from my IRA to my trading account. When I found out that RMDs were not required for 2020, I asked my brokerage firm to do a 'transfer-in-kind' of the same number of shares of the mutual fund from my trading account back to my IRA. It was done on 4/13/2020. The dollar value of this transfer was $31,263.96 due to the share price being lower. The 1099-R I received shows $40,000 withdrawn from the IRA and the 5498 for my IRA shows a deposit of $31,263.96. On the surface it appears that I have a net withdrawal of $8,736.04 which is taxable. The rep who I spoke with when I did the second transfer on 4/13 told me 'people do this all the time' and I would just have to include a note when I file my taxes. WHAT DO I DO IN TURBO TAX? Will I have to pay taxes on the $8,736.04?
