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Financial Planning / Tax Strategies
|Subject: Re: amt for 2013?||Date: 8/31/2013 9:56 PM|
|Author: lethean||Number: 119111 of 125003|
OK. In TT "what if" I backed out capital gains incrementally until relieved of AMT.
Relieved of AMT at cap gain of 48,795. Which means I backed out 22,640 of cap gain.
At 71,435 cap gain. Tax on full taxable income = 25,856
AT 48,795. Tax on full taxable income = 18,597.
Tax Difference = 7,259 on the 22,640 cap gain backed out. Yikes.
7,259/22,640 = 33% "effective" cap gain in AMT.
Wow. I really blew it. Roth was available. But I didn't want to use the Roth to save 15% cap gain tax. However, given the AMT status that I did NOT anticipate, it seems like I missed a GREAT opportunity to use the Roth to avoid AMT and an "effective" 33% cap gain rate on that 22,640 cap gain.
Sheesh. Lesson learned. Use "what if" BEFORE transacting. ALWAYS.
I HOPE that this sorry tale helps someone else avoid this situation.
Stupid. Stupid. Stupid.
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