In article <ao2tj4pbmvd9qkqdpf00evrsbj3riflipb[at]4ax.com> ,
"HW \"Skip\" Weldon" <skip5700removethis[at]yahoo.com> wrote:

- quote -

I believe he was only answering about the TAX consequences, because of
where the question was posted.

You're correct that there may be investment consequences. Even during a
financial meltdown, the old adage "buy low, sell high" still holds. If
you sell now, you may be doing the opposite, unless you feel that the
stock is not likely to recover, and may drop further.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"HW "Skip" Weldon" <skip5700removethis[at]yahoo.com> wrote in message
news:ao2tj4pbmvd9qkqdpf00evrsbj3riflipb[at]4ax.com...
- quote -

I figured that the OP already knew that a sale for less than cost is a
loss. However, since it's inside an IRA (type doesn't matter), there's no
recognized consequence. Now, closing the account instead of re-investing
the proceeds (and upon a subsequent sale, having a gain greater than the
loss first sustained) does count.

- quote -

No argument there, except that sometimes, diversification can be a bad
thing. Many rules have exceptions. ;-)


========================================= MODERATOR'S COMMENT:
And all generalizations are false.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Tue, 9 Dec 2008 00:23:10 EST, "D. Stussy" <spam[at]bde-arc.ampr.orgwrote:

- quote -

Far be it for me to suggest that a post is TOO succinct <grin> , but
there are financial consequences to selling stocks when they are down.

IMO, one of the primary objectives during an economic contraction is
to position oneself for the coming expansion. Depending on the stocks
you have, selling them at these prices does not position you for the
next stage of the economic cycle. An exception would be that if you
are not diversified now, and you use the proceeds to become more
diversified (like with an index fund).

Good luck with your health.


-HW "Skip" Weldon
Columbia, SC

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

If this is your only Roth IRA account and if the amount you get when you
close the IRA is less than you contributed, and if you had never taken a
distribution from a Roth IRA before, then at best you will have a loss that
can be claimed as a miscellaneous itemized deduction subject to the 2% rules
on Schedule A.

And of course you loose the potential of a tax free gain when (and if) the
stock recovers.
--
Don EA in Upstate NY

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Info" <infodata[at]nwfirst.com> wrote in message
news:sPOdnQlnULi6R6DUnZ2dnUVZ_vadnZ2d[at]posted.isomediainc...
- quote -

Selling the stock: none.
Closing the account: Varies.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"Info" wrote:

- quote -

It depends on how much was contributed and possibly other considerations.
See Publication 590.

--
Phil Marti
Clarksburg, MD

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I have a Roth IRA which contains one stock and about $200.00 cash. The
stock is selling for below cost. What are the consequences of selling the
stock and closing the IRA?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >