topic 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? in Retirement tax questions

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?

mkjtacassidy — Thu, 12 Feb 2026 04:23:56 GMT

Re: 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 — Wed, 04 Dec 2024 02:31:27 GMT

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

Re: 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?

dmertz — Wed, 04 Dec 2024 02:33:24 GMT

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.