Roth Conversion: Offset income with Biz losses

Submitted by Tony Pondel on Fri, 2010-02-19 19:59

I apologize if this has already been asked.

I have a biz client with significant biz losses (RE developer.) Before I approach him about Roth conversions, I wanted to find out if any type of business losses are eligible to offset the income from the conversion.

Thanks.



Submitted by Alan Spross on Fri, 2010-02-19 20:31

Losses that properly appear on line 12 through 22 of Form 1040 can be used to offset conversion income. If these losses will appear on his 2010 return, any 2010 conversions would have to be reported in 2010 instead of 2011 and 2012 to soak up the 2010 losses that cannot be carried forward to 2011 or 2012.



Submitted by Tony Pondel on Fri, 2010-02-19 20:36

Thanks. Just what I was looking for.



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