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josephyne
Level 1

How do I report a 1099-R that states land value? I never received cash. My IRA firm closed and relinquished custody of land. How can i report the $9,000 loss?

In 2007, I rolled $10,000 into a land based IRA.  The 1099-R value is just $1,093.  Can i deduct the loss?
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Accepted Solutions
Opus 17
Level 15

How do I report a 1099-R that states land value? I never received cash. My IRA firm closed and relinquished custody of land. How can i report the $9,000 loss?

No, and the $1000 is probably taxable income. The whole point of an IRA is that the money is not taxed when you deposit it, and you pay income tax on whatever you withdraw, whether it increases or decreases in value.  Since you never paid tax on the initial $10,000 deposit, you have no basis in your investment and the loss is not coming out of your previously taxable income.  So there is nothing you can deduct, and the money you did get is going to be taxable income.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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2 Replies
Opus 17
Level 15

How do I report a 1099-R that states land value? I never received cash. My IRA firm closed and relinquished custody of land. How can i report the $9,000 loss?

No, and the $1000 is probably taxable income. The whole point of an IRA is that the money is not taxed when you deposit it, and you pay income tax on whatever you withdraw, whether it increases or decreases in value.  Since you never paid tax on the initial $10,000 deposit, you have no basis in your investment and the loss is not coming out of your previously taxable income.  So there is nothing you can deduct, and the money you did get is going to be taxable income.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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josephyne
Level 1

How do I report a 1099-R that states land value? I never received cash. My IRA firm closed and relinquished custody of land. How can i report the $9,000 loss?

Thank you!  Much appreciated.

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