1099-R Distribution to be used as startup cost for setting up a Farm Business

[Steve-b01]

I am 64 years old. In November of last year I took a large sum of money out of my IRA's to start a farm business.  Is there anyway to reduce the tax burden incurred by withdrawing money from my IRA and using it as income into a new farm business I am starting? 

I noticed that if I treat the distribution as income for the business my tax burden is decreased significantly, but being that the distribution are 1099-R (Box 7 - Code 7 - Normal Distribution) I do not get the deduction.

Any insight would be appreciated.

[DavidD66]

No, there is nothing you can do to reduce the taxation of the distribution from your IRA.  As you mentioned, there is a way to invest IRA funds in a business.  It's not a simple process and very specific steps must be taken, but it can't be done after the fact.  You're stuck paying the tax on your IRA withdrawal.