I have some very long term assets that have high gains. When my income is at a low level in overall taxation, I choose to sell those assets even though not needed for living, then reinvest. It resets the gain clock. Its a way of spreading the gains taxes over a longer period versus all at once in the end. When SS income starts for me, such income displaces the 0% QDI (qualified dividends and capital gains tax) into the 15% bracket. Now without SS income, I can capitalize on using all of the 0% QDI bracket for my wife and I. As the other poster states - not necessarily relevant to the question other than TurboTax clearly treating them differently. 100% of the gains tax counted towards my AGI, but a tad over half of the conversion 'income' counted towards my AGI.
That is most certainly relevant when working up the MAGI that is the basis for IRMAA.
