Originally Posted by NoMoreJob
Am I correct in assuming that taking long-term capital gains equal to or less than carryover long-term losses will not impact MAGI for the purpose of the ACA?
Also, what are the rules for short-term carryover losses. Can they be used to offset additional long-term gains?
On the first question, I would think yes (LTCG<=LTCL carryovers would not affect O-MAGI) since LTCG are offset by LTCL carryforwards in determining AGI for the year and the calculation of O-MAGI begins with AGI.
I haven't seen anything that says they are carved out so I think for both types of capital loss carryforwards that they will follow the 1040 treatment for O-MAGI purposes. This will be a big advantage for people with big capital loss carryforwards.