I contributed in March 2016 for my 2015 Traditional IRA and then a day later I converted that 2015 IRA into a backdoor 2015 Roth IRA but lost some money in the day I waited to convert. I'm about to do my taxes for 2015, so do I list that loss on my 2015 taxes or my 2016 taxes and how? Or do I just not declare the loss?

Thanks for any help!


You don't. Say you deposited $5000. Then you converted $4950 to Roth. You declare $4950 as the amount converted and you're done.

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  • If I remember correctly, the $50 loss is deductible on Schedule A as a Miscellaneous Deduction but since Miscellaneous Deductions are subject to a 2% AGI floor, only a few people are able to get a tax benefit from the loss. – Dilip Sarwate Mar 31 '16 at 14:55
  • Doesn't the original IRA need to be closed out for that? – JTP - Apologise to Monica Mar 31 '16 at 15:15
  • I thought the Traditional IRA was closed when it was converted to Roth IRA? – Dilip Sarwate Mar 31 '16 at 17:09
  • I mean to take the loss, I thought one needed to close out the entire IRA. Converting isn't same as selling for loss and closing. – JTP - Apologise to Monica Mar 31 '16 at 18:03
  • Another question is what happens to the $50 of remaining basis in the Traditional IRA. Does it remain so you can use it later? – user102008 Mar 31 '16 at 18:22

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