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Client received an 1099 R for 9700 for 2015. On 4/10/2015 client contributed 5500 toward 2014 and 5500 towards 2015, On 8/11/2015 he took out all the money 9700 from the account - 1300 is loss.
on 9/15/2015 client bought a home.
1300 loss goes on to Schedule A under 2% loss
how to handle the ditirbution and which forms are impacted?
there is no income impact as it is a ROTH contribution
There is no panelty for 2014 amount as we can use the frist time home buyer exepction
There is no panelty for 2015 amount becasue it was taken out in 2015 itself - how to handle this and which form are impacted.
in 1099 R IRA/Sep/Simple IR check box is not checked - becasue of the the software is taking it line 16 insted of line 15- how to handle this.