Capital gains are included in the modified adjusted gross income, or MAGI.
Under the passive activity rules, you can deduct up to $25,000 in passive losses against your ordinary income (W-2 wages) if your modified adjusted gross income (MAGI) is $100,000 or less.
This deduction phases out $1 for every $2 of MAGI above $100,000 until $150,000 when it is completely phased out.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
