Geez that's a terrible title... Oh well
Hypothetically, if one were planning on getting health insurance off the ACA exchange, and getting a subsidy, and needed to show enough income to stay above the FPL limit, could you do a stock sale, claim the LT cap gain as income towards MAGI, and then immediately repurchase the same stock (at a higher basis)? If you did that in an attempt to generate a capital loss, the IRS would call that a 'constructive sale', and disallow the loss. Just wondering if there's any problem with using it to generate a (paper) gain.
Also, I assume that recharacterizing trad. IRA funds as Roth also counts as income for ACA MAGI purposes?