Solved: IRA losses have potentially been a miscellaneous itemized deduction if all IRAs are closed. Is this IRA loss deduction no longer there due to the Tax Cuts and Jobs Act?
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AzureWelkin
Returning Member

IRA losses have potentially been a miscellaneous itemized deduction if all IRAs are closed. Is this IRA loss deduction no longer there due to the Tax Cuts and Jobs Act?

How to deduct IRA losses is described here: https://www.investopedia.com/articles/retirement/05/012505.asp

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rjs
Level 15
Level 15

IRA losses have potentially been a miscellaneous itemized deduction if all IRAs are closed. Is this IRA loss deduction no longer there due to the Tax Cuts and Jobs Act?

That is correct. The deduction for a net loss when all IRA assets have been distributed is a miscellaneous itemized deduction subject to the 2% of AGI limitation. The new tax law eliminates all miscellaneous itemized deductions subject to the 2% of AGI limitation, including that one, for 2018 through 2025. The deduction is still available for 2017.


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rjs
Level 15
Level 15

IRA losses have potentially been a miscellaneous itemized deduction if all IRAs are closed. Is this IRA loss deduction no longer there due to the Tax Cuts and Jobs Act?

That is correct. The deduction for a net loss when all IRA assets have been distributed is a miscellaneous itemized deduction subject to the 2% of AGI limitation. The new tax law eliminates all miscellaneous itemized deductions subject to the 2% of AGI limitation, including that one, for 2018 through 2025. The deduction is still available for 2017.


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