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Subject:  Rollover IRA Distribution question Date:  2/9/2001  2:07 PM
Author:  Mahopacs Number:  46049 of 127549

I liquified a rollover IRA worth $44,000. After the 10% penalty, it was worth about $40,000. Along with this I received a bonus that was not taxed for an amount of $3,500.

I'm assuming I can add these two together $44,000 + $3,500 and come up with $47,500 of income that I will need to pay taxes on. Is this correct?

From this $47,500 amount can I reduce Mortgage Interest and Capital Losses?

For example, If I paid $10,000 in mortgage interest and lost $10,000 in selling stocks (capital loss)...Would I now only have $27,500 worth of income that I will need to pay taxes on?



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