can I claim loss in tax return if I sell my IRA stocks that lose money?

Question

And I want to withdraw from my Roth IRA account. Is there still panelty if I don't make any capital gain?

Answer 1

You can withdraw the Roth with no tax on any amount equal to, or less than, the original contribution amount. You can deduct the loss as unrecovered investment in an annuity (assuming that you have enough itemized deductions) under miscellaneous deductions on Schedule A. It will not be subject to The 2% limit. Please see a professional preparer. If they do not know about this way to deduct the loss, find one who does.

Answer 2

in order to deduct a loss related to a Roth IRA, you must ensure that:

1. all of the respective IRA accounts would have to be distributed and closed in order to obtain a deductible loss; and
2. The total distributions are less than the unrecovered basis in the Roth IRA. (contributions and/or conversions to a Roth IRA are considered non-deductible contributions. Thus, all of those contributions would add to the basis of the Roth IRA.)

The IRS takes the position that any allowable loss from either a traditional or Roth IRA is only deductible as a miscellaneous itemized deduction, subject to the 2% of adjusted gross income (AGI) rule.

Answer 3

You can always withdraw any amout up to your contributions without tax or penalty.

....but no, you can not take a loss on stock that is in a Roth IRA.

Answer 4

If YOU are not a dependent, and nobody else can claim them, you can file and claim them and get EIC. But since the amount of EIC is based on your earned income, you'd get around $1000. You would not qualify for the additional child tax credit.

Answer 5

no, a loss inside the ira is simply a loss. that is why you do risky investments outside a retirement account.

Answer 6

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