Have a question for the group:
If one has a large capital loss carryforward, are there ways to take advantage of it into early retirement? My thought process is that I can use it to offset capital gains of investments in after tax accounts while retiring early, i can minimize my (m)AGI and maximize ACA subsidizes?
Example: $100,000 capital loss carryforward. Retire early.
In year 1 of retirement, sell $80,000 in long term investments at a 50% gain, take a $40,000 capital gain applying $43,000 in capital losses for a net capital loss of $-3,000, with a carryforward of $57,000. Show $0 in AGI, maximize ACA healthcare subsidies, and rinse/repeat into year 2 of retirement, and until the capital loss carryforward is exhausted?
Thoughts?
If one has a large capital loss carryforward, are there ways to take advantage of it into early retirement? My thought process is that I can use it to offset capital gains of investments in after tax accounts while retiring early, i can minimize my (m)AGI and maximize ACA subsidizes?
Example: $100,000 capital loss carryforward. Retire early.
In year 1 of retirement, sell $80,000 in long term investments at a 50% gain, take a $40,000 capital gain applying $43,000 in capital losses for a net capital loss of $-3,000, with a carryforward of $57,000. Show $0 in AGI, maximize ACA healthcare subsidies, and rinse/repeat into year 2 of retirement, and until the capital loss carryforward is exhausted?
Thoughts?