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gilbertotorres20
New Member

I had an early IRA distribution. I used the monies to purchase property abroad outside US territory. Do I need to report this? Is the distribution fully taxable?

 
2 Replies
SweetieJean
Level 15

I had an early IRA distribution. I used the monies to purchase property abroad outside US territory. Do I need to report this? Is the distribution fully taxable?

Yes, it must be reported, and is likely taxable for Federal (if a Traditional IRA), plus subject to an additional 10% penalty for early withdrawal, plus state taxes as applicable.  Enter the 1099-R here:

Federal > Wages and Income > Retirement.

 

This an expensive way to buy property.

LeonardS
Expert Alumni

I had an early IRA distribution. I used the monies to purchase property abroad outside US territory. Do I need to report this? Is the distribution fully taxable?

Possibly, if you've had the account for more than 5 years, you won't be subject to taxes or penalties when withdrawing earnings for a first-time home purchase (up to $10,000).  Distributions above that are taxable.  You will have to report the distribution on your tax return.

 

Here's how to enter your 1099-R in TurboTax:

  1. Open (continue) your return, if you don't already have it open
  2. Locate the Search bar by the magnifying glass icon. Search for 1099-R and select the Jump to link in the search results
  3. Answer Yes on the Did you get a 1099-R? screen
    • If you land on the Review your 1099-R info screen instead, select Add Another 1099-R
  4. Answer any questions until you get to the screen Let's import your tax info. Here you can choose how you want to enter your 1099-R:
    • If your financial institution is a TurboTax 1099 partner, you can import your form. Select your institution from the list and enter your sign-in credentials, then select Get my form to start the import process
    • If you prefer to upload your 1099-R or type in the info yourself, select Change how I enter my form. On the next screen, select your preferred entry method
  5. Continue answering the questions to enter or review the info from your 1099-R

 

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