I inherited an traditional IRA ( NOT Roth IRA) from my mother and I know I have to withdraw those funds over 10 years. I am about to receive a historical tax credit for renovating a historical building. If I have part of that credit not used this year can I use that credit to pay the taxes that I will owe for taking the required distribution from that inherited IRA?
If that credit is large enough, can I empty that IRA completely, and use that historical federal tax credit to offset all of the federal taxes that I would owe on the funds that I withdraw. Basically, I won't have to pay any federal taxes?
I would take all the funds out, pay no taxes and create a new investment account with those same funds.
Thanks
