How much of $35000 is due to cap gains?So to be clear, let me give an example with fake numbers:
Pension...$30000
Vacation pay...$5000
Dividends and Cap gains end up being...$35000
Total income = $70,000
I sell SPY ETF right now at a $20,000 loss and buy VTI.
My MAGI is $50,000 correct? And I can still take withdrawals if I need them as long as its not from 401k which would be income, and I dont sell anything from my taxable accts that have a capital gain.
You can use your cap losses to offset $3k in income and then use the remaining $17k to offset any cap gains. However, you cannot use the cap losses to offset dividends (besides the first $3k in income).