capital losses vs HC premium tax credit

No takers? Well how about general advice about realizing capital losses to reduce taxes, and pitfalls such as:

1) Going so low on the progressive tax curve that you aren't really saving much. 2) Failing to harvest aging cap gains which will otherwise occur at a year when you are much higher on progressive tax curve. Even more disastrously you may be in an unpopular fund that is later forceably liquidated, giving a tax bomb. 3) Missing out on a later snapback on your underwater investments as they return to normalcy.

The above typically make me harvest cap losses only to bleed down some large legacy cap gains, to smooth out future lumps of income. But this year I would like to aim lower for a health care credit, so could use advice about the pitfalls. I guess I don't have to worry about poverty line quirks because my preferred stocks are pumping so much dividends. I switched all my bonds to those because their price action has been so steady and positive the last few months. tks

If you are below the poverty line, you are not eligible to enroll in a health insurance policy through the exchange, and therefore are not eligible for premium credits. You must enroll in Medicaid.

Dave

On 10/24/15 8:20 PM, dumbstruck wrote: Can anyone explain the rationale for being banned from taking that tax credit if you fall under the poverty line, but welcome to take it for being 1 to 4 times the line?!?

Fall under the poverty line and you are Medicaid eligible. Even above the line you can still be eligible. There is no asset test anymore.

I saw further considerations in old Money article by Penelope Wang. In order to maximize eligibility for HC premium credits, keep your income low by 1) not taking Soc Security payments before you get on medicare, and 2) cultivating a Roth IRA for lump emergency payments that might otherwise require cashing out investments carrying high capital gain.