I am hoping for some good news.
I made an investment several years ago that is going belly-up. The investment was in an LLC which owned a portion of a piece of real estate.
The end of 2033 capital account (as per the K1) is $700k.
I expect that in 2024 the LLC will be dissolved and my capital account will be set to $0.
If I'm not mistaken, that is a capital loss of $700k against which I could offset any realized capital gains, in 2024 and beyond (carried over).
I also have retirement accounts (IRAs, 401K, defined benefits, etc.) -- all tax deferred -- well in excess of that $700k amount.
Is there any (legal) way to convert $700k worth of the retirement funds to a Roth-type (i.e., post tax) account and have the $700k real estate loss offset it for tax purposes?
Thank you.
I made an investment several years ago that is going belly-up. The investment was in an LLC which owned a portion of a piece of real estate.
The end of 2033 capital account (as per the K1) is $700k.
I expect that in 2024 the LLC will be dissolved and my capital account will be set to $0.
If I'm not mistaken, that is a capital loss of $700k against which I could offset any realized capital gains, in 2024 and beyond (carried over).
I also have retirement accounts (IRAs, 401K, defined benefits, etc.) -- all tax deferred -- well in excess of that $700k amount.
Is there any (legal) way to convert $700k worth of the retirement funds to a Roth-type (i.e., post tax) account and have the $700k real estate loss offset it for tax purposes?
Thank you.
Statistics: Posted by josephny — Wed Dec 11, 2024 8:54 am — Replies 8 — Views 193