Where do you report sale of American Gold Eagles inside an IRA?

[peterhawaii]

Taxpayer wants me to report it on Schedule D netting the losses from  the sale of numismatic coins.

Somehow I think the IRA should be reported else where.  Where can I find the rules of how and where to report the liquidated IRA account?

[TaxGuyBill]

What is in an IRA stays in an IRA.  So if they were sold while in an IRA, there is nothing to report on the 1040.

But then you said "liquidated IRA account".  What do you mean by that?  Did the taxpayer WITHDRAW  money from the IRA?

[peterhawaii]

This is a new client.  He will be liquidating his American Gold Eagles IRA Account.  This means he will be cashing it in.  Then he has to report it on his 2021 Federal and State tax returns.  Where do I report the transaction.

[Just-Lisa-Now- · Accepted solution]

If he takes money from an IRA he'll get a 1099R to report on the tax return.

[BobKamman]

Maybe I'm assuming too much here, but it sounds like he has capital losses of more than $3,000 on transactions outside the IRA, and he wants to use them to reduce his 1099-R income from an IRA withdrawal. 

If that's the case, just figure out a polite way to inform him he's stupid, or ignorant, or both.  

[PATAX]

If he receives a 1099-r then would you not report it as you would any other 1099-r? Also since I am familiar with numismatic area, I am surprised that he lost money on what that you mentioned .... But that is just my opinion...

[qbteachmt]

Here's the issue:

"He will be liquidating his American Gold Eagles IRA Account. This means he will be cashing it in"

Separate Account and the account's Investments.

You can sell the coins, and the money still sits in the IRA Account. <== no distribution, nothing to report

Or, you can distribute all the money and Close the Account. <== triggers 1099-R

Or, you can Close the account by removing the coins from the trustee management. <== triggers 1099-R

Nothing here is Sched D. It's all protected by the IRA structure.

[qbteachmt]

"Also since I am familiar with numismatic area"

You cannot hold numismatic investments in an IRA. Only certain coins that fall under precious metal determinations are allowed.

[PATAX]

@qbteachmt 👍 I have been collecting coins since a child that is what I meant by being familiar...

[qbteachmt]

"I have been collecting coins since a child"

Okay, so now we know where all the pennies went.

[PATAX]

@qbteachmt I still check mY change for that old wheat penny... Who knows maybe one day I'll get lucky and find a 1909-s VDB....