Can I balance off a stock loss sale this year against taxes due on a conventional IRA sale?
- posted
16 years ago
Can I balance off a stock loss sale this year against taxes due on a conventional IRA sale?
Stock losses are first offset against gains, if you still have a net loss, up to $3K may be taken against ordinary income.
A sale within an IRA is not a taxable event. An IRA withdrawal is considered ordinary income as far as tax rates are concerned. Are you over 59-1/2? Why not just take that stock loss against regular 'earned' income? If you don't need the IRA money and are already in a low bracket, consider converting it to a Roth IRA.
JOE
Ok, up to $3K of capital losses will offset your income, more than $3K will carry forward to next year.
To the regulars here, I know I sound like a broken record when I say, if you are in a low tax bracket (see
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