I have $50,000 in cryptocurrency losses carried over from last year, can I do an Ira conversion into a Roth and pay my taxes by using my crypto losses?

[Bsch4477]

Your loss in crypto is a capital loss so only $3,000 of that loss can offset the ordinary income from your conversion. 

[dmertz · Accepted solution]

Cryptocurrency gains and losses are treated as capital gains and losses.  If after applying the carryover losses against capital gains you have losses left over, a maximum of $3,000 of the capital losses can be applied against ordinary income.  Any losses remaining after applying $3,000 against ordinary income will continue to carry forward.

The taxable amount of a Roth conversion simply adds to ordinary income.