I invested in a capital asset which has greatly appreciated in value. I have held it over one year and am looking to sell a substantial amount. The tricky part is I do not want to sell enough to put me over $118k of Modified Adjusted Gross Income for the year, which would start to phase me out of being able to contribute to my Roth IRA.
My thought is I could sell another long term capital asset I have at a loss, so it counts against my capital gains, thus keeping me below the $118k threshold. Here is an example. Let's say my income for the year from my job is $100k. If I realize a $20k capital gain, and I harvest a $20k loss on another capital asset, will this cancel out my capital gains, thus making my Modified Adjusted Gross Income $100k? And keeping me under the $118k limit to allow me to contribute fully to my Roth IRA?
Thanks so much.