Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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?



Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.