Yes, the 2022 return was accurate and you are correct that it was due to the loss. Enter the amount from 2022, Form 8606, Line 14.
Simply write the true reason which is that the account had a loss in value which is why you still have a cost basis in your traditional IRA.
As of now the loss remains as part of your cost basis, it could happen again in the future. If you convert nondeductible contributions right away, (without any gains), this basis will continue to carryover.
- Instructions - Form 8606 - You can review who must file. In any year where it is not required be sure to keep the most recent copy with your tax return to remind you of the basis you do have.
@Anonymous50
[Edited: 04/02/2024 | 5:54 AM PST]
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