Anyone with experience in calculating exclusion amounts on Form 8606 - HELP!!
Over the years, taxpayer made deductible/non-deductible traditional IRA contributions. Due to age, RMDs have been in place and all Form 8606 numbers/carryover amounts dutifully calculated.
Client died in early 2007, but RMD (for him!) was still required and said distribution was actually taken after his death. (Everyone involved agreed this is the correct procedure, as they are filing a joint tax return for tax year 2007.) Account now belongs to surviving spouse, who also is also above age limit and will now have RMDs calculated for herself on the same account. It is probable the RMD dollar amount may decrease due to actuarial tables and the like.
Question #1: On Form 8606, where do I obtain the 12/31/2007 value for the husband's account (line 6 of Form 8606)? By the end of calendar year 2007, technically that number is zero (account had been transferred to surviving spouse!).
Question #2: Starting with tax year 2008, what do I do with the "total basis" for what is now the wife's IRA?
I'm sure "the truth is out there" but perhaps someone who has dealt with this specific issue before can steer me to the right harbor.
Thanks in advance!
FE
Over the years, taxpayer made deductible/non-deductible traditional IRA contributions. Due to age, RMDs have been in place and all Form 8606 numbers/carryover amounts dutifully calculated.
Client died in early 2007, but RMD (for him!) was still required and said distribution was actually taken after his death. (Everyone involved agreed this is the correct procedure, as they are filing a joint tax return for tax year 2007.) Account now belongs to surviving spouse, who also is also above age limit and will now have RMDs calculated for herself on the same account. It is probable the RMD dollar amount may decrease due to actuarial tables and the like.
Question #1: On Form 8606, where do I obtain the 12/31/2007 value for the husband's account (line 6 of Form 8606)? By the end of calendar year 2007, technically that number is zero (account had been transferred to surviving spouse!).
Question #2: Starting with tax year 2008, what do I do with the "total basis" for what is now the wife's IRA?
I'm sure "the truth is out there" but perhaps someone who has dealt with this specific issue before can steer me to the right harbor.
Thanks in advance!
FE
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