Tax write off of IRA losses
During 2009 I lost $3,000 that was in an IRA and wasn’t notified of that loss until after I had filed income tax return. Could I have written this loss off?
During 2009 I lost $3,000 that was in an IRA and wasn’t notified of that loss until after I had filed income tax return. Could I have written this loss off?
Permalink Submitted by mk foss on Thu, 2011-08-04 21:41
You cannot write off losses that occur inside an IRA. The only benefit would be lowertaxable required minimum distributions in the future because there are less assets in the plan.
In some rare instances there can be a loss when an IRA is closed out as a loss – it only works if you have basis in the IRA from after-tax contributions and you cash out ALL IRAs you own and receive less than your basis. If you fit all of those circumstances the loss is just an itemized deduction which can be wiped out by the 2% limitation or by being subject to AMT in the year of the loss.