rbynaker
Level 14
12-06-2019
08:23 PM
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I'm not sure the timing of the income/loss is relevant (but this isn't exactly in my wheelhouse). Take a look at IRC 1377:
https://www.law.cornell.edu/uscode/text/26/1377
And regulations:
https://www.law.cornell.edu/cfr/text/26/1.1377-1
Basically the income/loss gets allocated pro rata per share per day so you'll get a different answer if the $100K withdrawal was on 3/1 vs. 3/30.
I think really this hinges on your use of the term "withdrew". I assume this means "exchanged shares for cash" and not just "took a cash distribution" but follow the legal paperwork to arrive at your tax position.
Rick
https://www.law.cornell.edu/uscode/text/26/1377
And regulations:
https://www.law.cornell.edu/cfr/text/26/1.1377-1
Basically the income/loss gets allocated pro rata per share per day so you'll get a different answer if the $100K withdrawal was on 3/1 vs. 3/30.
I think really this hinges on your use of the term "withdrew". I assume this means "exchanged shares for cash" and not just "took a cash distribution" but follow the legal paperwork to arrive at your tax position.
Rick