Can I take a partial foreign tax credit to avoid AMT?
I am eligible to take a foreign tax credit of approximately $1800 for foreign taxes withdrawn during 2007 from my stock brokerage account — the taxes were paid to Canada on dividends from certain Canadian energy trusts. It appears that if I take the entire $1800 foreign tax credit, I will then fall into the AMT category. However, if I were only to take, say, HALF of the $1800 credit, I would avoid the AMT category. Is there any problem with taking only a partial foreign tax credit to avoid AMT? Thanks.
