Ira Distribution

[peggysioux]

Taxpayer took total distribution of traditional IRA in 2009 and is only 57. If he invested $10,000 in IRA's throughout the years and received tax credit each year of his contribution making his basis zero, when he took the total distribution which was now worth only $9000, does taxpayer now have loss on schedule D? 1099-R shows taxable amount to not be determined.

[New York Enrolled Agent]

Taxpayer took total distribution of traditional IRA in 2009 and is only 57. If he invested $10,000 in IRA's throughout the years and received tax credit each year of his contribution making his basis zero, when he took the total distribution which was now worth only $9000, does taxpayer now have loss on schedule D? 1099-R shows taxable amount to not be determined.

Schedule D ???????????????????? When did an IRA become a capital asset? I would suggest you read Pub 590. I think it will give you the answer to your question.

[BP.]

TTB 4-26. See if your client meets the qualifications there. From what you've described, no loss, as there's no basis.

[taxmom34]

gains and losses within an IRA are not taxable or deductible. and the reason tax amount not determined is that the institution does not know if some of contributions were deductible on tax return