Do you pay taxes on the original value of an IRA when converting it a Roth IRA independent of the current value?

I have been told that one pays on the original value. If that's true I don't get it. If the IRA is composed of stocks and the value of the IRA has been reduced by say 50%, I've gained nothing, but lost 50% of the value.

Shouldn't this be a tax loss when I convert it? Asked by Blackjack21 38 months ago Similar questions: pay taxes original IRA converting Roth independent current Business > Taxes.

Similar questions: pay taxes original IRA converting Roth independent current.

You do pay taxes on the original value. You do pay taxes on the original value. In a few cases, where you have lost money, you would be paying taxes on more than the fund is worth.

But in most cases, you earn money when it's in an IRA. In those cases, you wouldn't want to have to pay taxes on the gains when you are simply converting it in a Roth IRA. You are not using the money for retirement now, so you should be taxes on it.

Unfortunately, you are in an unusual situation where you have lost money and have to pay higher taxes. Sources: It is my opinion.

I know I have to pay taxes on amount transferred.

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