qbteachmt
Level 15
2 weeks ago
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"How can I account for the basis so he isn't taxed on the full $85200"
His basis likely is from Pre-tax funds. That means everything out is taxable as ordinary income. That's what happens inside of a Traditional IRA, SEP IRA or SIMPLE IRA.
Are you trying to report gain? That's not how an IRA works.
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Don't yell at us; we're volunteers