I know you can't sell a stock that is down, take the loss, and then buy the stock back.
But how about a stock that is up? Can you sell it, take the profit, and then buy the stock again? I will have AMT this year, so extra profits won't cost anything. Who knows, maybe next year will be better.
Yes, there is no issue with gains. The IRS wants your money. We discussed the issue here not long ago on the speculation that cap gain rates will rise. For some, what you propose makes good sense. Joe
Not a wash sale. Wash sales deal with sales at a loss.
Having more capital gains means having more income.
Can you let us know how recognizing capital gains will cost you nothing because you have AMT?
I "thought" my real tax would go up and my AMT would go down; applying the same deductions to significantly more income.
As you suggest, it doesn't work that way. When I put numbers into TaxCut my AMT skyrocketed. My tax rate on long term capital gains was 22%. That doesn't seem right!
Long term capital gains are still taxed at 15% under AMT, but they increase your AGI and thus cause your AMT exemption to decrease.
Right. Long ago, I saw an article that discussed the many phantom rates. Not too different than the 46.25% that a single retired person can have when their Social Security starts getting taxed. And yet, I've seen little conversation about how this impacts the people who are least able to adjust their finances to compensate. Joe
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