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Using Premier. Didn't see any forms for divorced in 2019, distributions incident to divorce, etc. Why not or where are the forms?

Forum|Forum|7 years ago
June 6, 2019
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I received 1/2 of my ex-husband's IRA incident to our January 2018 divorce, established my own IRA & used part of the money to buy another house. My 1099R includes info about net gain/losses, but Premier doesn't ask any questions? Will I be taxed on the IRA transfer incident to divorce even though my actual income is very low?

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Best answer by dmertz

A transfer of an IRA incident to divorce is not reportable. Only the distributions you received from your IRA after the transfer are reportable. A Form 1099-R for a regular distribution from an IRA does not report net gains or losses, it only reports the gross amount distributed and is generally the amount includible in income on your tax return. The amount includible in income is also subject to an early-distribution penalty unless an exception applies.

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dmertzAnswer

Employee

A transfer of an IRA incident to divorce is not reportable. Only the distributions you received from your IRA after the transfer are reportable. A Form 1099-R for a regular distribution from an IRA does not report net gains or losses, it only reports the gross amount distributed and is generally the amount includible in income on your tax return. The amount includible in income is also subject to an early-distribution penalty unless an exception applies.

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pattie-dawnAuthor

Does it matter if the “cannot be determined” box is checked and/or whether part of the distribution was used before the IRA was established? I know that a few years ago my ex-husband and I withdrew money from his IRA to remodel the basement and we paid no capital gains. None of the info asked on this year’s Premier included any capital gains forms.