The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: ROTH & TAX WRITEOFF||Date: 1/29/2001 3:02 PM|
|Author: TMFExRO||Number: 45068 of 122851|
Purchased stock with part of my Roth IRA account. The stock i purchased has went bankrupt. Is there any way to take a tax write off for this loss. One suggestion i was given by an invidual was to move stock to regular account and sell.
That wouldn't work. When stock is distributed from an IRA, it carries a basis of its value at the time of distribution, in your case not much.
The only way to get a tax benefit from a loss in a Roth IRA is to totally liquidate the IRA for less than the total of your contributions. The difference would be a miscellaneous itemized deduction, and you cannot replace the money.
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