Sold rental property income inflated 2021

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Ninja
Posts: 36
Joined: Tue Oct 01, 2019 2:36 pm

Sold rental property income inflated 2021

Post by Ninja »

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?
User avatar
David Jay
Posts: 14586
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Sold rental property income inflated 2021

Post by David Jay »

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.
It's not an engineering problem - Hersh Shefrin | To get the "risk premium", you really do have to take the risk - nisiprius
niceguy7376
Posts: 3007
Joined: Wed Jul 10, 2013 2:59 pm
Location: Metro ATL

Re: Sold rental property income inflated 2021

Post by niceguy7376 »

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.
pshonore
Posts: 8212
Joined: Sun Jun 28, 2009 2:21 pm

Re: Sold rental property income inflated 2021

Post by pshonore »

David Jay wrote: Wed Jul 28, 2021 3:19 pm Your Medicare premium will go up for (2) years, but you can petition for a waiver for only 1 year.
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.
Topic Author
Ninja
Posts: 36
Joined: Tue Oct 01, 2019 2:36 pm

Re: Sold rental property income inflated 2021

Post by Ninja »

Thx for the update. I was confused about this .
Post Reply