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1099R Box 5

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Client's 1099R has more in Box 5 than in Box 1. Since this is described by the IRS as the amount of investment paid in, should the overage in Box 5 be a capital loss?

Individual

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sjrcpaAnswer

Level 15

You can't claim a loss on a rollover.

The more I know the more I don’t know.

dkh

Level 15

Is 1099R marked Total Distribution ?

nytcpa2012Author

Level 5

...I thought about that, but was thinking maybe we could take a pro-rata share each time $$ come out. I'm not easily finding anything on irs.gov or elsewhere that addresses this.

BobKamman

Level 15

Is this an employee pension, or a purchased nonqualified annuity?

nytcpa2012Author

Level 5

it's being paid by a life insurance co if that's helpful; other than that I don't know. Is there a way to find out without putting the client through tax hell? The amount of current year tax to be saved would be in the $500 range.

sjrcpaAnswer

Level 15

You can't claim a loss on a rollover.

The more I know the more I don’t know.

dkh

Level 15

Since it's a rollover - doesn't the information in box 5 just get filed away for tracking basis information

nytcpa2012Author

Level 5

noted. thank you.

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