the loss is on a mutual fund within an IRA (tax sheltered) acount
2006-08-12 05:55:10 · 6 answers · asked by ltnrnl 1 in Business & Finance ➔ Taxes ➔ United States
No, you can't take the loss now or later - that's the price you pay for the ability to defer taxes on IRA appreciation. But you can sell a fund that you hold in an IRA as long as the money is re-invested in something else but is still in an IRA - could buy a different mutual fund or something like a CD.
2006-08-12 13:28:52 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
You can buy and sell using money that is in the account. Cash from sales is kept in a money market account within the IRA. If you sell the mutual fund the proceeds go into the money market account. You can then use that money to by another fund. All money must stay within the IRA which may consist of multiple accounts.
The $3000 deduction only applies if you have put $3000 into the IRA. It does not matter what takes place within the IRA. IRA's do not have losses, only changing balances.
2006-08-12 06:03:46 · answer #2 · answered by Barkley Hound 7 · 0⤊ 1⤋
because you have study up in this, you already know which you will take your loss once you liquidate all your IRA money owed interior the 300 and sixty 5 days you liquidate all of them. with a view to get any form of deduction to your loss, you will get rid of each and every thing interior a similar 3 hundred and sixty 5 days. in case you have different IRA money owed, those could be liquidated to boot...each and every thing. permit me assume that it incredibly is your basically IRA, and which you have in no way taken something out of your IRA till now, which might exchange the muse of your investment. The stickler is that this: the muse on your IRA is the completed of your nondeductible contributions. i visit think of you have $25,000 in nondeductible contributions, that's the case in case you have a Roth IRA as an occasion. if your foundation interior the IRA became $25,000, and you liquidate it for $2,000, you would be able to take a deduction for the shortcoming of $23,000 as a miscellaneous deduction on style 1040 time table A. This deduction is project to a 2% of AGI floor. this would reason your itemized deductions to thoroughly wipe out your income tax legal duty, besides the undeniable fact which you do no longer in all probability get a $23K deduction, because you forgo the properly-known deduction, plus you are able to shave off 2% of your AGI. at a similar time as your income tax may well be 0, you will nevertheless could pay the $2 hundred penalty tax on the early distribution. regrettably, this loss can not be carried forward in case you are able to no longer make the main of all of it.
2016-11-04 10:43:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No. IRA accounts are ring-fenced. Taking anything out -- with profit or loss -- is taxable. Losses and profits are not taxed as such.
Be patient. This too shall pass.
2006-08-12 05:58:04 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No, IRAs are tax deferred. Since you don't pay tax on the gains you can't take deductions on the loses
2006-08-12 05:59:16 · answer #5 · answered by Bill 6 · 0⤊ 0⤋
Losses cannot be taken on an IRA, neither can profits be taxed.
2006-08-12 05:58:51 · answer #6 · answered by Anonymous · 0⤊ 0⤋