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Looking for CPA and tax experts to chime in on this subject as I am stunned regarding what I have discovered recently while researching in-kind transfer IRA transfer options...   I have verified with a number of the biggest brokerages that they are reporting the FMV (and hence the new cost basis) of stocks transferred in-kind from an IRA to a taxable account in a manner that may be incorrect.  If the transfer is processed prior to market close they are using the PRIOR DAY closing price instead of the day the transfer occurs.  I have checked, and re-checked with the offending brokerages and after reaching out to their back offices they are all saying the same thing: Closing price of the prior day is what is used, and they 'have been doing it this way forever'.  And to be clear, there was no confusion, they were understood the question was regarding standard publicly traded stocks being moved in-kind from IRA to taxable account within the same institution.  All that said, SOME of the big brokerages are determining FMV based on market activity on the day of transfer, but others are not. I would love to believe the method of using the prior day closing price is acceptable but can find nothing to support this approach.  If what they are doing is indeed incorrect it puts the clients in a horrid position as clients will have an incorrect 1099R issued as well as an incorrect cost basis applied to the transferred stocks, thereby resulting in future incorrect 1099B's as well.   Granted, maybe cost basis adjustments could be made on a return for the future stock sales, but that is always a potential red-flag. And I have no idea how an incorrect 1099R could even be 'adjusted' on a filing for the year of transfer, which even if possible would again result in a potential red-flag.   I am absolutely stunned this may be happening on such a broad scale. It leaves me with only two possible conclusions: Either 1) Clients and CPA's have been oblivious this has been transpiring for ages or 2) This is actually an acceptable method.  If it is the latter, can anybody point at some kind of supporting documentation that  stipulates prior day closing price is indeed an acceptable method for determining FMV for the situation being discussed?   Thanks,   SE

@support5 @support2    I have a passive "Unallowed" loss on my form 8582 section VII from last year against my passive rental investment.   I see the two screens below on TT for prior year loss carryovers. Where exactly should I enter the amount of unallowed loss from form 8582 in the screens below? Thank you for your help!   Where exactly should I enter the amount of unallowed loss from form 8582 in the above screens? Thank you for your help!

TT has me paying capital gains tax on capital that I invested into a real estate venture. And I don't believe that I should be paying capital gains tax on capital that I initially invested into the venture. Can someone please let me know how I reflect this in TT so I am not paying capital gains tax on my initial capital investment? Below is information regarding how this happened in TT and a redacted copy of my K-1 for reference to my question. In 2021, I invested $178,733 into a real estate fund. Last year there was a sale of a large portion of the assets. There was current year net income of $366,492 + returning $43,361 of my capital investment for a total 2024 distribution of $409,853 resulting in an ending capital account of $135,372 that is reflected in Part II L of the K-1. I have confirmed with the fund that the aforementioned $43,361 capital distribution is included in Part III 9a. TT is prompting me to enter the amount in Part III 9a, which is resulting in capital gain tax on the $43,361 in capital that was distributed back to me. I'm using TT online premium 2024. Thank you in advance.