Hi, there:

I just converted one stock in my regular non-deductible IRA to my Roth IRA. I understand I will need to file form8606 at the tax season of this year. My question is:

1. How to calculate the value of my conversion? Since I converted the stock, should I take the stock value at the date of conversion or the stock value at the end of the year2021?

2. If the stock was valued at less than the purchase price, how should I report it? say, I bought the stock at $5 each share, but at the time I did the conversion, it was only worth $1 each share, does that mean that I don’t need to pay any tax?

3. My case is a bit complicated. say, I initially contributed $5000 to non-deductible IRA, and after several trading during past years, it grow into $10,000, then I sold all those stocks, and bought into this ABC stock at $5 each shares, then the stock plumped, at the time I did conversion, the stock is $1, so the total values at the time of conversion is less then $5000, depending on the answer to the question one, if the value at the end of the year is also $8000, so how should I calculate the tax?

Thanks a lot in advance for any response.

Regards
Wendy