My client died in December of 2106. So I am preparing her final return. She had already taken her RMD from her IRA. She has a nondeductible basis. So for the 8606 do I get the value of her IRA on the day before she died, or is the value 0 zero then she can take the remaining basis left. (amounts to about $2700). There is no surviving spouse.
-
-
I haven't looked at F-8606 recently, but I can offer the following information: The remaining basis in her IRA remains with the IRA. It's not deductible on her 2016 return except, of course, for the pro-rata portion that relates to her 2016 distributions. The remaining basis can be used by the person or persons who inherit her IRA.
Many people are clueless regarding their options when they inherit an IRA, so if you know who the bene or benes are, you might be in a position to do them a big favor by explaining their options or, at the very least, recommending that they consult their own tax advisers.Roland Slugg
"I do what I can." -
take value on DOD?
Thanks Roland Slugg.... So she died mid December. So then do I use the value of the IRA on her DOD?Originally posted by Roland Slugg View Post
Yes, their are 4 beneficiaries and one of them is a client of mine. So you are saying take the remaining basis and split it by 4?Comment
-
Yes, if they inherited equal shares. Otherwise, allocate the basis proportionately to the inherited amounts.Originally posted by nwtaxlady
You may be the only person who knows what her remaining basis is in that IRA, so If I were in your shoes, I would take it upon myself to advise all four benes ... not just the one who is my client.Roland Slugg
"I do what I can."Comment
Comment