On Saturday, October 24, 2015 at 4:30:04 PM UTC-10, 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?!?
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