NameRedacted
Recycles dryer sheets
- Joined
- Oct 23, 2016
- Messages
- 236
For 2016 I had a huge tax bill, both Federal and State. That year I sold a large amount of ISO stock and got hit really badly by both AMT (for the first time) and the fact that I had some large capital gains. I retired in early 2017 and the main reason for selling the stock was so that I didn't enter retirement with a large portion of my net worth in a single stock.
Now looking at my 2017 taxes I have a fairly large AMT credit; plus my income this year is much lower. I played around figuring my 2017 taxes (with 2016 year's tax forms) and found that I'll only use a small amount of my AMT credit. Essentially, it looks like I may pay no Federal taxes for 5-6 years!
While this may seem like a good thing, I do have a dilemma. The latest tax bill in Congress may eliminate the AMT entirely. If that goes I can see the AMT tax credit just disappearing. So I'd like to claim as much of the credit as soon as possible. I do have some stocks in a non-taxable account that have large unrealized capital gains that I can sell. When I do this the tax program shows no increase in my Federal refund (as expected) but my State tax bill increases. The only gain I get is that I have eliminated future taxes.
However, capital gains are taxed at a much lower rate than regular income so I feel that I may not be getting the best value from the credit.
Anyone have suggestions as to other options I may have?
Now looking at my 2017 taxes I have a fairly large AMT credit; plus my income this year is much lower. I played around figuring my 2017 taxes (with 2016 year's tax forms) and found that I'll only use a small amount of my AMT credit. Essentially, it looks like I may pay no Federal taxes for 5-6 years!
While this may seem like a good thing, I do have a dilemma. The latest tax bill in Congress may eliminate the AMT entirely. If that goes I can see the AMT tax credit just disappearing. So I'd like to claim as much of the credit as soon as possible. I do have some stocks in a non-taxable account that have large unrealized capital gains that I can sell. When I do this the tax program shows no increase in my Federal refund (as expected) but my State tax bill increases. The only gain I get is that I have eliminated future taxes.
However, capital gains are taxed at a much lower rate than regular income so I feel that I may not be getting the best value from the credit.
Anyone have suggestions as to other options I may have?