MyPenneys, I am just playing devil advocate here because nobody is sure about how we will get paid. But if we will be paid like PIERS was paid, a check will come from the KCC or the trust and it does not matter if your escrow markers are in IRA or Roth. And by the way, the escrow markers at your brokerage are simply the escrow CUSIP for the purpose of distributing dispute shares.
When PIERS got paid, I received a check from KCC and KCC/Trust filed to the IRS as dividends and not as capital gain. So what I did was to report my tax as dividend income but I subtract my cost basis as my cost of buying WAHUQ.
Good luck arguing with the trust and IRS because it is like talking with a wall. Once the trust/KCC reports to the IRS in a certain way then you are stuck. If a computer at the IRS finds a discrepancy in your tax filing, it will flag so that the IRS Mafia can go after you. I have gone through it so I know.
Anyway, I am more concerned now about how much I will get paid and paying tax is something to worry about when the time comes.
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