A capital loss can offset capital gains and up to $3,000 of ordinary income if no capital gains to offset. IRA's distributions are ordinary income so the IRA distribution plus all other ordinary income can only be reduced by $3,000. The remaining capital loss ($27,000 assuming no capital gains to offset) will carry to next year to do the same.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
