[thissideup]

I invested my inheritance in stock and lost most of it then with drew the remaining, I received no gains, is the money I withdrew taxable? I started with 72,000 and with drew 57,000, which was the balance of my inheritance...

[MukatA]

You have long term capital loss. You must claim the loss on schedule D (Form 1040). Your cost basis is the fair market value of the stocks on the date of inheritance. The money you drew is not taxable.

[AtlantaTaxExpert]

Further, the loss carries over to future years to offset other income UP TO $3,000. So, every year, $3,000 of the loss is burned until it is used up, or until you die.