Have a Tax Question? Ask a Tax Expert
Probably not. The answer is that if your IRS is a traditional IRA, you received tax deductions for your contributions and therefore you have no "tax basis" in the IRA or another way of saying is that your tax basis is zero.
If you made non-deductible contributions to your traditional IRA, then you would have a tax basis in the IRA equal to the amount of your non-deductible contributions, but the value of the distribution would have to be less than your tax basis in the IRA in order to be able to take a tax deduction for any loss.
Remember that if you are not 59 1/2, not only would the $30,000. be taxable to you but you would be subject to the 10% early withdrawal penalty if you were to close out the IRA.
Let me know if you have any additional follow-up questions.