Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-19-2011, 09:39 PM
Junior Member
 
Join Date: Jan 2009
Posts: 11
Can we deduct losses incurred from a ROTH distributions on our Tax Return?

Can I claim a loss when all the amounts in all of the Roth IRA accounts have been distributed and the total distributions are less than the unrecovered basis?

Also, how does one go about deducting these losses on their tax return.

Thanks!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 12-20-2011, 03:05 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“Can I claim a loss when all the amounts in all of the Roth IRA accounts have been distributed and the total distributions are less than the unrecovered basis?”---->As long as you cash out all of your R- IRA account( I mean as long as you have received 100% of your R-IRA distributions and your balance in your R-IRA is zero as you said), you can deduct the loss by reporting it on Form 1040 Sch A, itemized Deduction, MISC. deduction subject to 2% of AGI, for the amount lost relative to the basis. UNLESS you itemize your deduction on Sch A, you can’t deduct the loss on your return.
“Also, how does one go about deducting these losses on their tax return?”---->As said above to deduct the loss form your R-IRA distributions, you need to itemize your deduction son Form 1040 Sch A line 23 , and you MUS file only Form 1040, NOT Form 1040A/1040EZ. You can itemize your deductions on Sch A as long as your itemized deduction amount is MORE than your standard deductions.In addition, miscellaneous deductions are not allowed for purposes of the alternative minimum tax (AMT), so you could lose the benefit of the deduction if you are subject to AMT taxes.


Last edited by Wnhough : 12-20-2011 at 03:11 AM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Can I deduct my books and supplies expenses incurred going to MBA school? BusinessGuru Miscellaneous 1 03-16-2010 11:58 AM
Are Theft losses incurred in 2007 deductible on my 2007 tax return? presley Miscellaneous 1 01-13-2008 02:05 PM
2007 Tax Strategy for Stock Losses Incurred in 2007 TaxGuru Capital Gains 0 12-11-2007 02:43 PM
Can I deduct repairs incurred due to flood on my tax return? curlopt Capital Gains 1 03-29-2007 03:35 PM
If my S Corporation has losses how much can i deduct on my personal tax return Doctor S-Corporation 1 02-28-2007 10:06 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.