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How Cap Gains/Carryover Losses impact MAGI under ACA
Old 10-17-2013, 10:07 AM   #1
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How Cap Gains/Carryover Losses impact MAGI under ACA

If I withdraw $$ from my taxable account realizing a capital gain but have a sufficient carryover loss to fully offset it will that impact my MAGI for ACA purposes.
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Old 10-17-2013, 12:19 PM   #2
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Certainly works fine for normal AGI, and leaves you with a $3k subtraction from income if you have that much carryover left. I haven't seen anything about ACA taking back capital losses.
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Old 10-17-2013, 12:42 PM   #3
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Quote:
Originally Posted by NoMoreJob View Post
If I withdraw $$ from my taxable account realizing a capital gain but have a sufficient carryover loss to fully offset it will that impact my MAGI for ACA purposes.
Since MAGI is based upon 1040 data, and the loss carryovers happen on schedule D Part II line 14, I suspect it is the value on line 15 that matters or even the combined value you get of short and long, that appears on form 1040 line 13. Note that MAGI is based upon AGI which is found on line 37 of form 1040 and includes line 13 in the total.
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Old 10-17-2013, 12:57 PM   #4
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Originally Posted by meierlde View Post
Since MAGI is based upon 1040 data, and the loss carryovers happen on schedule D Part II line 14, I suspect it is the value on line 15 that matters or even the combined value you get of short and long, that appears on form 1040 line 13. Note that MAGI is based upon AGI which is found on line 37 of form 1040 and includes line 13 in the total.

That's my thinking - that it's basically line 37 with a couple of other possible adjustments, the most common being tax exempt interest (see link below). So this would net out cap gains minus losses and another $3,000 against ordinary income (assuming there's additional available).

http://laborcenter.berkeley.edu/heal..._summary13.pdf

So then to to my understanding this means that for those with carryover losses they can produce income to the extent of those losses (less $3,000 that will go toward ordinary income) without impacting the MAGI under the ACA. Correct?
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Old 10-17-2013, 12:59 PM   #5
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http://laborcenter.berkeley.edu/heal..._summary13.pdf

Yes, AGI plus add back a few items...............
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