ACA cliff suspension strategy

[NW-Bound]

The folks that make the H&R Block tax software did all they could to prevent automation (don't let you select/copy/paste using the standard easy stuff), but they're up against me, and I didn't give-up!

I wrote a script in a tool called SikuliX which matches visually and interacts with the tax software UI. I created a loop where I jacked-up up the conversion amount, then printed the 1040, selected text and pasted to an Excel sheet. Each column in that sheet was an entire 1040, but all I needed was one row in that output. Slow, but sure. While this runs, the machine can't be used, so I just started it, and found something else to do for an hour

Never heard of this SikuliX, so I looked at a couple of tutorials on YouTube to see what it does and how it works. Neat!

 

[Finance Dave]

Not skibum, but yeah, LTCG income cutoff is done based on taxable income, and it depends on how much ordinary income you have - LTCG stacks on top of ordinary income.

See here for a visualizer:

https://engaging-data.com/tax-brackets/

Also, note that you might pay state income taxes on that 0% federal LTCG. Many states (including mine) start with federal AGI and make little or no adjustment for LTCG.

That is a great website tool, thanks!

I sat with my CPA yesterday and we went through all this, and now I have a better understanding of how the sale of a property will impact taxes, including the unrecaptured depreciation.

Today I initiated an $80,000 Roth conversion from DW's TIRA. Next year will be different with the sale of at least one rental...we shall see.