are there any provisions in the tax code that would allow me to deduct a capital loss against a traditional ira account? say some one had purchased an american common stock at it's high's and it later became a penny stock or had depreciated 80 or 90 percent.. is that a deductible loss on a tax return. if no,. why not and if yes please give a scenario in which this would be allowed.
Additional Details
the taxpayer and his wife (my aunt)started contributions to their traditional ira's in 1983 and continued through till their retirement in 1999 at age 65. He was a high paid executive who earned greater than $140,000 per year (his wife worked also) they both had retirement plans at their jobs and also funded their traditional ira each year for the maximum allowed amount. the ira assets consisted entirely of his company stock (purchased between $40-$65 per share)which they sold in December 2006 for $3000. and spent. by my calculations they have 17 years of contributions at 4000 per year and it just would seem to be deductible as a capital loss. my aunt is a pack rat and has all the statements for the account as well as 50 plus years of all kinds of paperwork.