I received 1099r ira distribution as beneficiary of a deceased participant. taxable amount = gross distribution. how do i know (or report) what the capital gain is?

[dbaldwin]

ira/sep/simple box is checked.  box 2b taxable amount not determined is checked.

[macuser_22 · Accepted solution]

You don't.   Gains and losses withing an IRA are not reported outside of the IRA - only distributions are reported and taxed.

Unless you KNOW that the inherited IRA had a non-deductible basis and you have the last filed 8606 form with an amount in box 14, then the box 2a is the taxable amount.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[dmertz]

To elaborate, distributions from an IRA are treated as ordinary income.  They are not subject to capital gains treatment.

[dbaldwin]

Thanks for the elaboration.