It sorta was ;^)
I was doing one of those "back door" Roths. where, if you make too much to get a Roth IRA directly, you just get a traditional IRA and then switch like ten seconds later to a Roth IRA. You pay taxes on that switch of course from the pre-tax traditional IRA to the post-tax Roth IRA but not on the basis.
There lies the rub (wow, 2nd time I've used that expression this week) most people get traditional IRAs and are able to deduct them from their taxes. I didn't, since, again, I make too much to deduct it, and used post-tax money to get the tradtional IRA.
So, guess what? the mutual fund company shows that as no basis for when I change it over and owe taxes on the entire amount, which gets reported to the IRA. The real problem comes from my TurboTax whic h doesn't acknowledge such things are legal and can occur and I have a hard time tricking it to show the Traditional IRA basis eg, $6500.
All of this is to explain that I'm technically correct, but have wandered down a legal avenue that most people don't take and the description above is just to show how convoluted the whole thing is. I did probably owe some money b/c the post-tax money I put in 2011 earned some money since then and that portion can be taxed, but the IRS gave up, They got a nice cover letter from me decribing the whole convoluted process, I even put in there about the earnings I did make and that I owe them $751 basically they could have accepted that offer and closed the case. that is I said I was OK with that. So there, I got away with not paying my taxes, and they ageed to it.
I reported last week that I'm over this now, you might see why I was pretty relieved and happy, close that book. [Post edited by `lag at 03/17/2019 1:13PM]
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In response to this post by Hokie360)
Posted: 03/17/2019 at 1:02PM