I've checked through the forum and have ask specifically on this issue, but still can't figure how to account for a Capital Loss Carryover. As an example, let say your Regular Assets consists of $1M dollars of Mutual Funds throwing off $30K in annual income from Capital Gains and Dividends. Suppose you have $200K in Capital Losses carried over from last years Federal tax return. It seems there would be several years at this rate that the annual income from the mutual funds would not included in your MAGI for tax purposes.