Hello,
My mom passed away in late 2022 and I took a good sized distribution from her IRA that I inerited (I think I took 15%, since I'm not on SS yet).
As I am looking at my 2023 tax calculations, I am wondering about exactly what is taxed on this money. I withheld 10% of the distribtion, but I get confused about the cost basis on her investments that were in this IRA. Since they were in her IRA, they didn't get stepped up on her death, do I pay taxes on the stock sale with the old basis or am I just paying taxes on the distribution, independent of any gains on the stocks?
Thanks in advance. I am just doing some preliminary calculations prior to getting our paperwork to our CPA...just thought I'd ask on this forum.
My mom passed away in late 2022 and I took a good sized distribution from her IRA that I inerited (I think I took 15%, since I'm not on SS yet).
As I am looking at my 2023 tax calculations, I am wondering about exactly what is taxed on this money. I withheld 10% of the distribtion, but I get confused about the cost basis on her investments that were in this IRA. Since they were in her IRA, they didn't get stepped up on her death, do I pay taxes on the stock sale with the old basis or am I just paying taxes on the distribution, independent of any gains on the stocks?
Thanks in advance. I am just doing some preliminary calculations prior to getting our paperwork to our CPA...just thought I'd ask on this forum.