Permalink Submitted by Alan Spross on Tue, 2009-05-26 22:16
it could, if it was large enough to offset the effect of the AMT exemption, particularly if the taxpayer has certain income subject to AMT or deductions that are not allowable under the AMT, eg. state and local taxes or misc itemized deductions. The best determination is to use tax software and input as much detail as possible with various conversion amounts. In the event of an unexpected surprise, partial or full recharacterization is always an option after the fact.
Permalink Submitted by Alan Spross on Tue, 2009-05-26 22:16
it could, if it was large enough to offset the effect of the AMT exemption, particularly if the taxpayer has certain income subject to AMT or deductions that are not allowable under the AMT, eg. state and local taxes or misc itemized deductions. The best determination is to use tax software and input as much detail as possible with various conversion amounts. In the event of an unexpected surprise, partial or full recharacterization is always an option after the fact.