I got it as an IRA distribution

  You can take a distribution from your
  Traditional Individual Retirement 
  Account in the form of either cash
  or investment securities.  

  Taking your distribution in the form
  of stock is an efficient way to move
  high growth, low dividend assets out
  of your IRA into your individual account 
  so that future appreciation will be taxed 
  at capital gain tax rates rather than
  marginal ordinary income tax rates.



  Any time there is a severe stock market decline (such as our current stock market
  rout) is an ideal time to take an IRA distribution of stock that is severely depressed.  
  You pay tax on only the fair market value and the subsequent rebound in value will
  be taxed at the more favorable capital gains rates rather than the ordinary marginal
  rates that will eventually apply to all gains inside the IRA when you take future 
  distributions.

  If you choose to take a distribution in the form of stock, your cost basis per share
  is the average trading price on the date of distribution from your Traditional IRA. 
  This is the amount that will be reported to you as taxable income from IRA
  distributions on your Form 1099-R at the end of the tax year. 

  If you choose to take your distribution in the form of a bond, note, or mutual fund
  shares, the same principles apply.  Your cost basis after the distribution will be the
  average trading price for the bond, note, or mutual fund shares on the date of the
  distribution.  

  The holding period is determined by the original acquisition date of the stock, bond,
  note, or mutual fund when it was purchased inside your Traditional IRA.


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