I started an IRA last year not realizing I was over the income limit. Since I was allowed a reduced Roth contribution, I transferred a portion of the IRA to a Roth in early April and reported that in the IRA contribution section.
Right before the 15th, I was advised by Fidelity to just close the account and transfer to regular brokerage for now. These sales did not finalize until April 18, and transferred the 21st, but I was told told this go towards 2016. Where do I enter the gains for the remainder of what was in the IRA sold/transferred to brokerage? Do I enter each stock as an individual capital gain in the main capital gain section, or is there a special place for place for IRA closure/transfer/reclassification?
Also does this sale count towards 2016 or 2017? If I transfer these to Roth this year, is there special handling of IRA to Roth in 2017 taxes, or is it just treated as a straight capital gain and what I do with it in 2017 is irrelevant?
If your stocks were transferred in kind, the IRA distribution is the value on the date of transfer plus any cash that was in the IRA at that time. any increase in value over your contribution is "earnings on the excess". It is considered ordinary income and goes on Line 15b.
Your holding period on stocks is the date of sale minus date of transfer into your regular brokerage account. Your basis is the value on the date of transfer.
If your stocks were transferred in kind, the IRA distribution is the value on the date of transfer plus any cash that was in the IRA at that time. any increase in value over your contribution is "earnings on the excess". It is considered ordinary income and goes on Line 15b.
Your holding period on stocks is the date of sale minus date of transfer into your regular brokerage account. Your basis is the value on the date of transfer.