Cashing In My IRA

[Yoochul C.]

Hey all,

I recently sold a home in 2016. Unfortunately for reasons I don't want to get into, I couldn't do a 1031 exchange. So I had some capital gains plus depreciation recapture. So I know i'm due for some taxes on the sale. Now, I also plan on cashing in on my IRA. With all the fees paid and taxes levied on cashing out my IRA, could any of that "loss" offset my capital gain on the sale of my property?

Thanks
Yooch

[Ralph R.]

Yoochul C. There is no loss to write off when you cash in an Ira. You are paying the taxes you deferred and a penalty for cashing in early. No loss to write off. If I remember right the taxes on Capitol gains is 25% on the first 40k. Then your normal tax rate on the rest. I only did it once. I'll never do it again. Better to refi to take profit out. Unless you get forced into it with a court order. Then it's time for a new attorney as well. RR