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Transferring Real Estate from and IRA to me, is there a tax liability?

no
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Accepted Solutions
dmertz
Level 15

Transferring Real Estate from and IRA to me, is there a tax liability?

This is a reportable IRA distribution.  If this occurred in 2015, your IRA trustee should have reported the distribution on Form 1099-R showing the Fair Market Value of the property as the gross amount distributed.

It's taxable to you in the same way that this gross amount would be taxable to you if it was a cash distribution.

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3 Replies
dmertz
Level 15

Transferring Real Estate from and IRA to me, is there a tax liability?

This is a reportable IRA distribution.  If this occurred in 2015, your IRA trustee should have reported the distribution on Form 1099-R showing the Fair Market Value of the property as the gross amount distributed.

It's taxable to you in the same way that this gross amount would be taxable to you if it was a cash distribution.

Transferring Real Estate from and IRA to me, is there a tax liability?

No.  I did do a RD amount but I did not receive anything about the fair market value to the property.  This year is a RMD amount but not cash in the IRA just Real Estate.  May I transfer the RE from the IRA to me?  And is there a tax liability?
dmertz
Level 15

Transferring Real Estate from and IRA to me, is there a tax liability?

A distribution of property from your IRA is still a reportable distribution for the year in which the distribution takes place.  Without a value, how can you know what your RMD amount needs to be or whether or not you've satisfied your RMD for this IRA?

Your tax liability is based on whatever is reported in box 1 of the Form 1099-R for a distribution from an IRA.  A Form 1099-R is required unless the amount that would otherwise be reported in box 1 of the Form 1099-R is less than $10.  The income is reportable on the tax return for the year in which the distribution occurs.
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