ROTH IRA - Tax reporting on stocks sold at a loss in 2004

[Guest sugarcrash]

This is an excellent site! I have a ROTH IRA and have sold 3 individual stocks at a loss and rolled the remaining $ over into a "group fund" with Wachovia. Is the loss on the stocks deductible on 2004 taxes?

[John G]

I am assuming that you mean that you sold three stocks and bought some mutual fund from within you Roth with the available cash.

Tax deduction for loss? NO, you can only get a tax write-off if you close all of you IRAs or all of your Roths (depending upon which type of account has the losses) and then you can claim a loss, subject to certain percent limitations. For about 90% the paperwork, hurtles, , and the percent limitations will indicate trying to take a tax write-off is not worthwhile.

See IRS publication 590 for additional information.