Sold 2 rental property’s total sale 950000
Made some money in stocks 75000
This is very unusual for me .
Help with this needed .
I read that we can do cost averaging is this possible.
Income in the prior years has been 90,000 and will continue to be the same after this.
Will my Medicare premium be affected?
Sold rental property income inflated 2021
Re: Sold rental property income inflated 2021
Your Medicare premium will go up for (2) years, but you can petition for a waiver for only 1 year.
Last edited by David Jay on Wed Jul 28, 2021 3:24 pm, edited 1 time in total.
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Re: Sold rental property income inflated 2021
As for rentals, it is just not the selling price that matters.
In simple method it is Selling Price - buying price - commissions + depreciation recapture
There is no cost basis average after selling. If you had sold all stock units, then the profit is selling price - buying price.
If all the stocks were bought more than a year ago and sold now, then the profit is considered long term profit.
In simple method it is Selling Price - buying price - commissions + depreciation recapture
There is no cost basis average after selling. If you had sold all stock units, then the profit is selling price - buying price.
If all the stocks were bought more than a year ago and sold now, then the profit is considered long term profit.
Re: Sold rental property income inflated 2021
Why will it go up for 2 years? Assuming this income will go on his 2021 return (filed in 2022), it should effect Medicare premiums in 2023. And filing a waiver probably won't help since cap gains from sale of vacation or rental property are generally not "excludable" for Medicare premium purposes.
Re: Sold rental property income inflated 2021
Thx for the update. I was confused about this .