I am doing a partial conversion of my traditional IRA to a Roth IRA. I know that I will owe taxes and will use another source (not the traditional IRA) to pay the taxes. One way I am thinking about covering the taxes is to use stock losses (realized in my brokerage account). Is there a calculation to figure out how much of the taxes I will owe for the conversion will be covered by the stock losses from my brokerage account?
My guess is that it depends on the tax bracket for my AGI (adjusted gross income), which will be lower as a result of the stock losses, but I'm wondering if there is a calculation to help me approximate how much stock losses from a brokerage account would offset the taxes owed for the partial conversion. I hope this question makes sense and thanks for taking a look. Keep up the great work and thanks for the help!
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