How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
Type Your Finance Question Here...
Megan C is online now
A new question is answered every 9 seconds

I converted a portion of my standard IRA over to a Roth IRA

This answer was rated:

I converted a portion of my standard IRA over to a Roth IRA in 2012. I am pretty sure that I will be taxed based on the regular income tax rate, such as what I will pay for salary (let's say it is 28%). Did I state that correctly?

I have more than $3,000 in losses in Capital Gains. Can I offset any of the Capital Gain losses (beyond the $3,000) against the monies I converted over to the Roth IRA?
Thank you for your question, and thanks for using

When you convert your traditional IRA to a Roth IRA, you incur ordinary income. Therefore, you can only deduct up to $3,000 of capital losses against this amount. So no, you cannot offset your capital losses with your Roth conversion.

Please let me know if I can be of any additional assistance.

CLICK HERE for more on this topic.

Thanks again for using and have a great day

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site*
You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.
Megan C and other Finance Specialists are ready to help you
Thanks for allowing me the opportunity to help you. Please let me know if I can be of any further assistance to you in this matter. Also if you ever need anything else in the future please Simply enter "MyVirtualCPA" in the subject of your question Thanks again for being a JustAnswer customer