Asset testing

[COZICAN]

Has anyone heard info on ACA to begin asset testing as opposed to income only?

Coz

 

[audreyh1]

Has anyone heard info on ACA to begin asset testing as opposed to income only?

Coz

No, never heard of this.

 

[Aerides]

No. at best you may have heard an idle rumor, but there have been no mentions of this in spite of many discussions of attempted changes to ACA law in the past 18 months.

IIRC, something about the way the ACA is written into tax law makes it income-dependent. Any change to instead leverage assets would be a dramatic rewrite from the ground up, a wholesale overhaul, which looks incredibly unlikely at present.

 

[MRG]

No, never heard of this.

+1
I found some old articles from 7 years ago that suggested people wanting it, never happened.

 

[COZICAN]

No. at best you may have heard an idle rumor, but there have been no mentions of this in spite of many discussions of attempted changes to ACA law in the past 18 months.

IIRC, something about the way the ACA is written into tax law makes it income-dependent. Any change to instead leverage assets would be a dramatic rewrite from the ground up, a wholesale overhaul, which looks incredibly unlikely at present.

Perfect. Thank you!!

 

[brucethebroker]

My guess is that there would be a public outcry at the Feds sticking their noses into people's personal wealth. Besides, assets top heavy in personal housing equity would hurt people who might really need the tax credits. Half a million in CD's vs. half a million in home equity, as an example.

 

[Smitty700]

My guess is that there would be a public outcry at the Feds sticking their noses into people's personal wealth.

Unfortunately, I'd say that the Feds have their noses stuck all the way into people's personal wealth as it is, with the reporting to the IRS of capital gains, income, IRAs (form 8606), dividends, large gambling winnings, estate taxes...

There's not much the government doesn't already know about us. And they can ask Google and Facebook about the remainder.

 

[marko]

Net worth=assets minus liabilities.

This forum (and bankruptcy court) is full of stories of people we know who's income is very high but who's NW is below zero. All you need to do is leverage a huge mortgage for yourself.

Make $300K, buy a mansion, qualify for free healthcare?

Also I suspect that for many, hiding one's assets would be easier than one's income. I know of a few true UHNW folks who's paper NW is near zero.

If there was a good, easy way to go after NW vs income I'm sure our friends in DC would have gone that way.