[net.taxes] Claiming IRA losses and expenses?

thrapp@noscvax.UUCP (03/19/84)

I do not have an IRA but I am curious about something:

As I understand it contributions to and revenues from an IRA are
tax deferred.  What about losses from an IRA and any management or
setup fees?  Are they claimed somewhere on one's tax return?

...!sdcsvax!noscvax!thrapp

johnson@saturn.UUCP (Mark Scott Johnson) (03/20/84)

You can NOT deduct IRA losses.  After all, you've already deducted your
IRA contribution once.  (I don't know anywhere else in the tax code where
you're allowed to write off the same thing twice.)  This is one of the
reasons many financial advisors recommend against risky IRA investments.

IRA setup and maintenance fees are deductible under "Miscellaneous
Deductions" on Schedule A.  I write in the category "Investment Expenses"
ever year and include IRA-related stuff there (along with subscriptions
to financial magazines, etc.).  Last I heard, the IRS was still being picky
about how your IRA setup and maintenance fees are paid.  They should be
billed and paid for SEPARATELY from your annual IRA contributions.  (I
personally consider this unreasonable.  As long as the fees are distinguish-
able, they should be deductible.  But then again, who ever accused the
IRS of being reasonable and logical?)
-- 
Mark Scott Johnson
CSnet:  Johnson@HP-Labs
USENET: ...!ucbvax!hplabs!johnson

grant@eosp1.UUCP (Rich Grant) (03/22/84)

Mark Scott Johnson doesn't know of anyplace in the tax code that allows
something to be deducted twice.  Here is one:

Say you have owned some investment (stock, gems, collectibles,
whatever) long enough to qualify for long term capital gains, and the
time has come to sell at a profit.  If you wish to make a donation to a
charitable organization, you can get a double deduction by giving away
the investment.  Since the item is not sold, no tax is paid on the
gain.  The "fair market value" however may be taken as a deduction.

Does anyone know if IRA accounts can be given away?  If things were
reasonable, I would guess that this would incur the tax and possible
penalties of any other withdraw from an IRA.  But then again, if things
were reasonable, . . . .