You'll need to sign in or create an account to connect with an expert.
You should be paying the taxes on the 990-T from the IRA funds and not from outside IRA sources. Doing it that way reduces the income in the IRA so you naturally don't pay taxes a second time.
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.
Assuming that this is a traditional IRA, the loss in value of stock A prior to the merger is an amount on which you will never pay taxes because it's an amount that will never be distributed from the IRA, the same as if there had been no merger.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
gdhaness
Level 2
willymck
Level 1
richastacio
Level 2
tk01kj
Returning Member
tk01kj
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.