No. of Recommendations: 14
He can save $ by selling LTCG for income (v. dividend income), but he seems to be saying that LTCG is treated differently than dividends for purposes of Medicare/Obamacare rates and plans.

They are, and they aren't.

Long term capital gains and qualified dividends are taxed the same way. The difference comes in the details of needing dollars to spend.

Say you want to spend $50k a year. If you get that all from qualified dividends, the whole $50k is taxable.

But if you instead sell stock to generate that $50k of spending money, you don't need to recognize $50k of gain. You could sell $50k of stock that will generate only $20k of taxable gain. Or maybe it's $10k of gain. Or it could be $40k of gain. Or it could be a $10k loss!

You get to choose how much gain to recognize by which stocks you sell.

--Peter
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