What if a merger occurred of stock held in an IRA which results in a loss from stock purchased prior to merger? Example; stock A was purchased at $40 in IRA. Stock A dropped to $10 per share. Stock A was merged with Stock B at a .33 rate of shares (100 shares gets 33 shares of new stock). Then the custodian files a 990T which shows UBIT on the merger plus a schedule D showing capital gains. How is the $30 per share loss on Stock A accounted for? There was no capital gain. However, there was a loss on capital gain.
