Curmudgeon
Recycles dryer sheets
- Joined
- Oct 17, 2016
- Messages
- 255
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?
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?