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New Member
posted Jun 1, 2019 6:05:24 PM

Why was there no option for an In-Kind Distribution of precious metals in TurboTax Premier? I understand I did not have to pay taxes until I sold the metals.

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2 Replies
Level 13
Jun 1, 2019 6:05:25 PM

ASSUMING that the "distribution" is from a traditional IRA and assuming that you have no basis in the IRA, (i.e., made no non-deductible contributions), then any distribution from the IRA is fully taxable.  If the distribution is "In-Kind" then you enter the dollar value of the distribution "as if" actual cash was distributed to you, using the fair market value of what was distributed.  That's why there's no interview option in TurboTax for an in-kind distribution.  You make and retain in your own records how you determined the fair market value of the distribution and keep this information with your paper copy of your "as filed" income tax return.

Your understanding of when you report the income and pay the taxes is incorrect.,

Not applicable
Jun 1, 2019 6:05:26 PM

retirement a/c distribution?  where did you read this?

https://www.irahelp.com/forum-post/21993-kind-distribution-precious-metals-valuation


from IRS pub 590-B

Distributions Fully or Partly Taxable

Distributions from your traditional IRA may be fully or

partly taxable, depending on whether your IRA includes

any nondeductible contributions.

Fully taxable. If only deductible contributions were made

to your traditional IRA (or IRAs, if you have more than

one), you have no basis in your IRA. Because you have

no basis in your IRA, any distributions are fully taxable

when received. See Reporting and Withholding Requirements for Taxable Amounts, later.

Partly taxable. If you made nondeductible contributions

or rolled over any after-tax amounts to any of your traditional IRAs, you have a cost basis (investment in the contract) equal to the amount of those contributions. These

nondeductible contributions aren't taxed when they are

distributed to you. They are a return of your investment in

your IRA.

Only the part of the distribution that represents nondeductible contributions and rolled over after-tax amounts

(your cost basis) is tax free. If nondeductible contributions

have been made or after-tax amounts have been rolled

over to your IRA, distributions consist partly of nondeductible contributions (basis) and partly of deductible contributions, earnings, and gains (if there are any). Until all of

your basis has been distributed, each distribution is partly

nontaxable and partly taxable.