If you have a loss on your Roth IRA investment, you can recognize the loss on your income tax return, but only
when all the amounts in all of your Roth IRA accounts have been distributed to you and the total distributions are less
than your unrecovered basis. Your basis is the total amount of contributions in your Roth IRAs.
You claim the loss as a miscellaneous itemized deduction, subject to the 2%-of-adjusted-gross-income limit that
applies to certain miscellaneous itemized deductions on Schedule A, Form 1040. Any such losses are added back to
taxable income for purposes of calculating the alternative minimum tax.
