Dear VolvoGirl.
I did not lose value in my IRA. I had 50K IRA last year that was losing money in stock market. I closed my IRA account and I had two months to roll it over into another qualified IRA.
While I was waiting to find another qualified IRA to roll it over to, I invested in a trading company to make some profits. I did make some profits but when I attempted to withdraw my funds to my bank account, I realized the trading company had frozen my account and I could not get a penny out. This was a scam company.So I lost all my money. Now I have got a 1099-R from IRA company that I closed. IRS has got a copy too. When I enter this 50K in turbo tax as normal distribution, it asks me what I did with the money. If I say I rolled it over to another IRA, there are no taxes due. But I didn't roll it over, I lost the entire amount in a scam company. Turbo Tax is showing me I have to pay over $10,000 tax on this distribution. I have no money because I lost it in scam investment. Where in Turbo Tax can I claim my 50K loss for investment to offset the taxes I owe?
Please consult with other Turbo Tax expert and get back to me at your earliest convenience.
Thanks,
Hossein
