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Im in the middle of a short-sale with no results on my prior

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I'm in the middle of...
I'm in the middle of a short-sale with no results on my prior residence on which I put $100K down payment. I bought a condo for cash with IRA money and currently reside in the condo.
1. Is there a way to show the $100k down on my original house as a loss when it sells?
2. What can I do to not pay or pay less than the $60K I'll owe on the IRA money this tax year?
Submitted: 7 years ago.Category: Tax
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Answered in 6 minutes by:
11/2/2010
Tax Professional: Jacy, Certified Public Accountant (CPA) replied 7 years ago
Jacy
Jacy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 568
Experience: Nine years individual income tax preparation and consulting
Verified

Hello,

 

Unfortunately, I have to agree with your CPA.

 

1. A loss on a personal residence is not deductible, just as gain may be excludable from tax.

 

2. There is no way to get out of tax on an IRA distribution unless it is rolled over within the 60 day period. Most strategies for reducing tax involve spending money, like making a deductible charitable contribution or an IRA contribution.

 

Sorry for the bad news.

 

Please Reply if I can help you further.

 

Thank you!

 

 

Jacy
Jacy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 568
Experience: Nine years individual income tax preparation and consulting
Verified
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Jacy, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 568
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