i know that this topic has been covered in the forums as it relates to losses in value in non-taxed 401k accounts, my question concerns a taxable situation.
Last year I was "downsized". I had an outstanding loan against my 401k that was called due upon termination. I rolled over the balance of my existing 401-k plan into an IRA (thus liquidating the 401k) but elected not to repay the loan. It bacame taxable at that time. I declared the loan amount on my taxes.
Here's my quastion: The value of my 401k at time of liquidation was about 60% of it's value at the beginning of the year. When I liquidated tha account to roll it over to the IRA, it was worth significantly less than just a few months prior. That loan amount ($50k) was part of the value of the portfolio. Since I'm being taxed on the gross amount of the loan, should I not also be able to realize the loss?
Thanks!
Last year I was "downsized". I had an outstanding loan against my 401k that was called due upon termination. I rolled over the balance of my existing 401-k plan into an IRA (thus liquidating the 401k) but elected not to repay the loan. It bacame taxable at that time. I declared the loan amount on my taxes.
Here's my quastion: The value of my 401k at time of liquidation was about 60% of it's value at the beginning of the year. When I liquidated tha account to roll it over to the IRA, it was worth significantly less than just a few months prior. That loan amount ($50k) was part of the value of the portfolio. Since I'm being taxed on the gross amount of the loan, should I not also be able to realize the loss?
Thanks!