Capital gains and the ACA

Financial Planning Tax Strategies
1

I have a capital loss carryover and am considering a sale to incur a capital gain next year in order to repurchase the shares in a Roth. Due to ACA income limits to get a subsidy,we do not owe any federal tax at all. My question is if I offset the loss carry forward with a capital gain,how does that affect income calculations for purposes of the aca?
Assuming no changes to tax law for 2023.
TIA

Jk

2

Due to ACA income limits to get a subsidy,we do not owe any federal tax at all.

Be aware that the ACA subsidy limits will return to the 400% of FPL cliff in 2023.

My question is if I offset the loss carry forward with a capital gain,how does that affect income calculations for purposes of the aca?

Any net capital gain, after summing your gains and losses, including the carryover loss, from your Schedule D is what counts toward your AGI.

Aj

1 Like
3

Thanks again AJ.