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Retirement tax questions
OK, I talked to Tax Department at brokerage about like property. They stated the 1099R will show the full amount taken from the account (value of shares day transferred from IRA to Brokerage account). In May (or thereabouts) they will issue a IRS 5498 (I assume box 2) showing that the shares were returned at the total value of the shares on the day they were transferred back into the IRA. (This was less, as the market was down.) They do not do the 5498 till after 4/15 since you can add money for preceding tax year into IRA till filing. The difference between the out and in will be taxable income. This will be marked as a rollover in the difference shown between box 4a and 4b. (We had 3 "rollovers" in 2020.) I can force this in the TT program by showing it as a Rollover. They have confirmed the numbers they will be reporting as being put back in our IRA accounts.
He stated that I could talk to a tax professional, and might be able to go the full amount back in, since it was the same "property" (to .001 share) out and in. Based on above discussion, way over my head, not enough money to argue about, I am just going to make it the way they report it. Part of this will then flow through the 8606 process on post tax IRA contributions. I wish now I had just put cash back in.