TAX CREDIT
My client has a large IRA aggregate. He is 6 years from RMD age. Each year he converts a portion to a Roth but will not have the aggregate converted before reaching RMD.
He has an investment into a historical hotel which will generate tax credits. Is it possible to use these tax credits to offset the ordinary income generated by his Roth conversion or RMD.
Thank you.
Permalink Submitted by Alan - IRA critic on Sun, 2021-10-17 13:51
Normally, tax credits will offset other taxes generated on the tax return. But it is possible that there could be limitations for this particular credit which requires detailed knowledge of the particular credit this investment will generate, and how much can be claimed in a single year vs carryforward to future years. Researching all the possible credits and their limitations is not a subject for this forum. Perhaps client’s tax preparer can confirm how the credit works so he will know how much to convert.