Hi Noel; If you pay the taxes from funds other than the conversion funds you win! If you pay the tax from the conversion fund(as Crikker does in his example) you lose! The brackets and the increase in stock value are important in the calculations. You gambled and won, as did I!
Hi Noel Here is the math; Conversion tax is 37% of $317,000=$117,290. Non-conversion tax is 12%(optimistic) of $1,746,000= $209,520. Of those two taxes which do you want to pay? ;.)