Re: Self-directed IRA and Equity Trade Losses

Rich Carreiro wrote:
George <pyde_piperSKIPTHIS@xxxxxxxxxx> writes:


My father has been taking care of a friend's traditional IRA which
currently he manages through Scottrade. He is quite familiar with
trading, but less familiar with the ins & out of IRA's.



He never received a combined 1099 for the sales which occurred in 2004


That's because they were in an IRA.


and was wondering how to deal with the losses expecting to carry the
remainder of roughly ($12,000) in losses as one would with regular
losses in equity trading.


There is no loss to report on the return. Just like you're not
taxed on the gains, you don't get to take the losses.


The question is - are there losses that need to be dealt with or is the
IRA different wherein no money was taken out (funds sat in a connected
money market for that IRA) and so no taxable event has occurred?


The latter.

The only thing the IRS wants to know about is when money does
into the IRA and when money comes out of it. Everything that
happens inside of it (aside from engaging in prohibited
transactions) is a black box with no tax effects or tax
reporting.

Thanks to you both for your replies. Would it be possible for you or Paul to site the code source for that determination? As I'm preparing the 1040, I would like to reference the law explaining why the losses can't be claimed.

TIA

--
- George
"... are you going to finish that?"
.

Relevant Pages

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