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Roth IRA Mutual Fund Investments:
1998 - 2001 contributions $ 8,000.00, 2002 contributions $ 750.00,

Thus, having peeked ahead, I can sum up that your basis in the Roth IRA is $8,750.00.

1998 - 2001 reinvested dividends & gains $ 700.34,
Total cost of Investments = $ 9,450.34

And on a clear day the sky is blue. The total cost of your investments in any IRA, Roth or otherwise, is irrelevant. The only thing that matters is the amount contributed (and, in the case of a Roth, the amount converted from traditional).

late March 2002 total withdrawal used as partial down payment for first time home (condo) buyer. Proceeds: $ 8,548.41.
total loss $ 901.93.

As noted before, your loss is $8,548.41 - $8,750.00 rather than your calculation.

does any of this get reported anywhere on the 2002 return?

You report the Roth distribution in Part III of Form 8606. You'll have zero taxable income and zero penalty from the distribution. Since you've not recovered the amount of your contributions, there's no need to do the penalty waiver form.

is there any loss recognized anywhere?

Miscellanous itemized deduction on Schedule A, subject to the 2% of AGI exclusion.

Phil Marti
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