Form 8606
First of all, will the box to elect out of the 2010 Roth conversion income spreading (2011 and 2012) be on Form 8606?
If so, if married filing joint, can one spouse elect to include Roth conversion income this year (2010) while the other spouse elect to spread (2011 and 2012)?
The reason I ask is we have a client who has unutitlized tax attributes this year and we would like to at least convert enough to use those otherwise lost tax attributes. However, if we convert everything (both spouses) this year and pay the tax ,it kicks us into some nasty AMT and so it is beneficial to spread the income.
By the way, have heard anything on the AMT patch for 2010?
Thanks,
Doug Keegan
Permalink Submitted by Joseph Arsenault on Wed, 2010-06-16 19:36
Great question on which form will allow you to elect out of the deferral. I would guess it would be the 8606 but have not seen an official release on this yet from the IRS. Maybe someone else has?
I do know that you can elect different options for each spouse. Just as you mentioned, one IRA recognizes income in 2010, the other spouse defers it out. As far as the AMT, is it the state taxes that are throwing you off? Just curious.