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Financial Planning / Tax Strategies


Subject:  Re: Tax loss on stocks Date:  2/9/2009  10:24 AM
Author:  irasmilo Number:  104392 of 127753

I am thinking of "moving" a couple investments to a Roth IRA. Am I correct that to do so, I must sell in my current account and re-buy in the IRA. If the sale will result in a loss how long must I wait before re-buying in the roth to lock in the tax loss. Also for tax purposes is there a difference between short term loss and long term loss. If so , how long must the stock be held to be long term? Thanks

Yes, you must sell the investment in your taxable account and repurchase it in your Roth. You cannot make contributions to an IRA using anything but money. If your taxable sale is a loss, you must wait more than 30 days before repurchasing in your Roth if you want to claim the loss on your tax return. Finally, there is no tax advantage to allowing a loss to become long-term (held more than one year).

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