@VAer
So you are saying that at some time in the past you made $3000 of non deductible contributions to the traditional IRA AND there have been no earnings so there is still $3000 in the account then you can convert any amount you wish tax free. In the year you made the non dedictible contribution a form 8606 had to have been filed thus you will report the non deductible basis amount contributed in the past and the converted amount will reduce that basis automatically on the form 8606 leaving the balance.
