IRA loss

[dpkaji1pers]

In 2008 I purchased $25.000 of gold coins in a gold backed IRA account.  Over the next ten years, the value dropped so much the maintenance fee were too big a percentage of the value so in 2018 i sold them for about $7,500.  i reported the sale on my taxes and paid taxes on the income.  I now wonder if I could have declared a loss in that investment and saved some on taxes.  If I could have, can I declare the loss on my 2019 taxes which I am about to file?

[macuser_22 · Accepted solution]

Gains or losses in an IRA are not reportable outside of the IRA and are not deductible.   You simply have less money to pay tax on when the IRA is distributed.

[VolvoGirl]

And you probably weren't suppose to enter the sale on your 2018 return.  You might need to amend your return.  What did you do with the proceeds from the sale?  Did you leave it in the IRA?

[Hal_Al]

"In 2008 I purchased $25,000 of gold coins in a gold backed IRA account."

"In 2018 i sold them for about $7,500." 

"I reported the sale on my taxes and paid taxes on the income."

Selling something for $7500 that you paid $25,000  results in a loss, not a taxable gain.  But as others have, said, you do not report, on your tax return,  any sales within an IRA.  If you did so, on your 2018 return, you should be able to file an amended 2018 return to remove the sale and get back the tax paid; UNLESS all that you really did was take a $7500 distribution from your IRA.  That would be taxable.

"I now wonder if I could have declared a loss In that investment and saved some on taxes."

No.  You do not claim either a gain or loss from activity within an IRA.

Prior to 2018 (2017 and earlier years) it was possible (but only in rare circumstances) to deduct losses in a Roth IRA or non-deductible Traditional IRA, subject to itemizing and the 2% of AGI rule. 

[dpkaji1pers]

I did not roll the money into another IRA.  I spent it as income.

[macuser_22]

If you received a 1099-R and reported that on your tax, then there is nothing else you can do.