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In cacluating MAGI, do you include cap gains before they get reduced by carry forward loses from prior years, or does the carry forward loss eliminate the gain from being included in MAGI?

Remember, MAGI is Modified AGI. So you start with AGI. And AGI includes the net of your current year cap gains and losses with your prior year loss carryovers (with a $3k limit on the net loss). So as a starting point, you will include your carryover losses, but only to the extent of the $3k overall limit, if that applies.

Now, as to the modifications, that's going to vary by the specific provision you're looking at. So you'd have to look at the proposals to see what modifications they're making to AGI.

I have enough trouble keeping up with enacted law. I don't spend any time looking at early proposals, particularly when they're just political posturing. When Congress gets away from posturing and actually gets something into a conference committee, then maybe it will be worth the time to see what might be coming.

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