This might come across as a stupid question, but I am going to ask anyway...
I am currently managing my 90 YO Dad's affairs.
- Current income is about 16K a year in SS
- +/- 3K in dividends.
- RMD of 6.6K this year but looking to increase that amount (this year) to reduce taxes later (if it becomes an inherited IRA).
- Current fed/state taxes are ZERO.
He has a holding in his brokerage account that has a LTC-loss of about 6K and I am thinking of selling it off (any gains will be minimal since it was a high dividend holding) and using the loss to allow a higher RMD...while maintaining a ZERO tax liability.
I understand that the LTC losses will first be applied to short term gains, then long term, then ordinary income. What I would like to confirm is that the 3K MAXIMUM per year is *after* the ST/LT gains calculation.
Am I in the ballpark or out to lunch on this?