@dmertz wrote:
I did some testing with TurboTax and it appears that TurboTax puts this in bucket 1.
That's consistent with what is discussed in this boglehead post: https://www.bogleheads.org/forum/viewtopic.php?p=6272503#p6272503
They say that IRRs are investments in contracts and should be reported in line 22 of form 8606. I am curious what your thoughts are. They seemed confused at first, but it looks like the term "investment in contracts" convinced them that IRRs should go in line 22.
I agree that the IRS Notices do not really address this issue.
Yeah, I read the notices several times to ensure I understood everything. Thanks for confirming this.
