Bad years for stocks give you tax flexibility by realizing gains minus-ed out by varying losses. At least assuming the tax code isn't insane, such as form 8962 (health care premium credit) appears to be. 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?!?
That seems an absurd pitfall if you realize losses to the extent of bringing you under the poverty line (combined with various complex deductions). The only exception seems to be if you expected to be poor and applied for advance premiums... forget that scenario. It seems unfair for even non-investors... do I gather they get other credits that compensate for those lost premium credits?
So say you are juggling losses with gains... and put aside that platitude about ignoring taxes with investments; there are many investments that become ripe for a slightly different etf deployment anyway over time. You apparently have to target your AGI with fussy precision to get relief on one of the most onerous payments of the year (my hyper expensive mandatory premiums for near worthless coverage has applied for 49% increase next year).
- posted 5 years ago