The only part of your statement that makes me think you may not understand is the "so if I sell say $22k".I’d like to be sure I understand this correctly. I need to sell shares in my taxable account for living expenses. My MAGI needs to be around $25k (ACA) so if I sell say $22k, I’ll own no tax on LTCGs.
Short term capital gains (included in ordinary dividends on the 1099) along with interest from i-Bonds will generate a few thousand dollars in income which drops me into the 10% bracket. I'm usually in the 12% income tax bracket.
So:
1. I really don’t need to be concerned with the cost basis and lots when I’m selling this year.
2. My tax bill this year will be very small.
3. For ACA income purposes I’ll be aligned with the income level my subsidies are based on.
Does that sound correct and is there anything else I should consider?
Thank you.
If you engage in a sale of shares that produces $22,000 in total proceeds, then your taxable gain will be some lower amount, due to the return of your original invested capital it took to buy those shares. This will not create enough income to get you to $25k.
If you sell enough shares to create a $22,000 long term capital gain, then your income will rise to the level of $25k, but selling those shares will likely yield more (possibly much more) than $22,000 in total proceeds.
Is that clear? Post questions if not.
Regards,
Statistics: Posted by retired@50 — Mon Oct 21, 2024 11:23 pm