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Retirement tax questions
A loss from a 1099-B will not directly offset income from a 1099-R. Both forms are about different types of income. They go to different places on your income tax return. A 1099-B from a brokerage is investment income. A 1099-R Roth conversion is ordinary retirement income.
Capital losses from a 1099-B will first offset any other capital gains. On top of that, you can deduct $3,000 against ordinary income and carry the remaining amount to next year.
If you had no capital gains, you could deduct $3,000 as a capital loss on your 2022 return and carry $12,000 to the next year.
See: Limit on the Deduction and Carryover of Losses
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‎January 24, 2023
6:25 PM