How Does Real Estate Income From Selling Home Work With ObamaCare?
I have several questions about whether I am to enroll in Obama care and if I will penalized. First, my mother was worried she will be penalized for last year.
I know when you sign up for Obama Care, you are supposed to report possible future incomes.
We sold our house/building last year and she did not report that as possible future income. Honestly we did not know whether the building would sell or when it would sell. We had the building up for sale for over 2 years before it finally did sell. She was unemployed when it sold, and she is still unemployed.
Will she be penalized for not having health care even though she did get income from selling our home? Also, does she have to sign up for Obama Care this year if she is still unemployed but made money because we sold our home last year? If you could please help us that would be greatly appreciated.
I also wanted to know would I have to sign up for Obama Care. I recently quit my job and moved to a new area. I am currently unemployed but I do plan on finding a job. I actively looking for a new job, but as of right now, I am unemployed. Again, I know with Obama care you are to report possible future incomes, but I do not know how much I would be making or where I will be working.
Will I have to sign up for Obama Care, and if not, Will I be penalized?
Please help me with my concerns and inquiries. I do not want to be in trouble and I do not want to be penalized, so I am asking for your help and guidance on these matters. Thank you for your time and I hope to hear from you soon.
Christine
Long term installment sale of business counted income under affordable care act?
ObamaCareFacts.com
If it is taxable income for you, then as a rule of thumb it would be.
Frank Altieri
You reference primary home. I sold a second home that was only for personal use. I owed the home for 32 years. Will that be counted as income to repay Obamacare subsidies.
ObamaCareFacts.com
A second home that you used for personal use follows a different set of rules than a primary or a rental property. A second home for personal use works like a primary home in terms of mortgage deduction, but works like an investment property for a sale. Thus, assuming you held the second home longer than a year (which should be the case for most people), you’ll owe the long term capital gains on it when it is sold (i.e., you owe the long term capital gains tax on profits from the sale… which means the taxable amount will affect ACA tax credits).
So you need to factor profits from the sale of a secondary home when figuring out tax credits for the year (or be ready to repay excess credits at tax time).
That is the Gist. Google “capital gains tax on second home” and “mortgage interest deduction on second home” for more reading.
Cindi Fallstrom
If I accept husky ins as it was offered and I sell my house will I have to pay it back?
Erin
As mentioned in the answer above, you are able to deduct gains from the sale of your primary home from your income (up to $250,000 for an individual and $500,000 for married filing together). Your Premium Tax Credits are based on your MAGI which doesn’t add back in any of income from the sale of your primary home that you were able to deduct from your AGI. So unless the sale of your home nets more than those amounts (which ever is relevant for your tax filing status) you will not owe back Premium Tax Credits. If its slightly more or significantly more you should update the marketplace with this increased income or you may owe some back Premium Tax Credits.
Paul Atkinson
I have had obamacare for 5 years, and just signed up again for 2017. My tenant wants to buy a second home I had for my son. We no longer need it. If I sell it, will I owe from the capitol gains? Or should I go without obamacare for 2017, and pay a penalty, to save for my retirement?
ObamaCareFacts.com
If you are making a profit from a non-primary residence then yes this could offset your cost assistance and you would want to take this into account.
Julie
My family is currently on Medicaid and we will be selling our primary home in January with a capital gain above and beyond the $500,000 deduction. As this is a one time only lump sum income and will not change our monthly income for Medicaid coverage, aside from when we receive the check in January, how do I report this to Obama Care? And, how does it impact our coverage for January and then for February and onward if we don’t have a monthly income change beyond the one time in January?
ObamaCareFacts.com
If you are receiving tax credits then the lump sum can affect credits, if you are on medicaid it can affect Medicaid. The exact way the lump-sum income is going to effect you can differ by your situation and the state. Given this you should seek advice directly from your state Medicaid department and/or healthcare.gov to get a better sense of what your specific profit margin will mean in your specific situation. I’m hesitant to give more exact advice on such a big ticket item like this.
Douglas McKillop
How much tax wil I be charged for Obamacare when I sell my home?
Concerned relative
My aunt now receives Medicaid benefits in Hawaii for health insurance. She is currently 62 and has been unemployed for many years. If she sells her house will her benefits be affected? Also she mentioned that after she sells her house she would like to give (gift) the proceeds to some friends who she likes very much. She plans to live with a friend after she sells her house. How does what she would like to do affect her current medical coverage and eligibility? How will what she wants to do affect her Medicare eligibility when she turns 65? She would look to Medicaid to pay for part B coverage at that time.
Tim
I do not fully understand the answer here. If a single taxpayer has a net capital gain of $200,000 above the section $250,000 exclusion, that income is not included in MAGI?
ObamaCareFacts.com
We aren’t tax experts, just helping with this as far as we can. I think the exemption from selling a primary home does not care about other capital gains… but other capital gains may themselves affect your ability to get a tax credit.
If you read the IRS pub you’ll see there are other factors to consider here. Make sure to double check detailed tax things like this.
https://www.irs.gov/publications/p523/ar02.html
Lee
If I sale a vacation Home will the capital gains make my Obama Care payment go up?
ObamaCareFacts.com
Secondary residence, so if you make a profit, and thus have to pay taxes, then yes that is taxable income that adds to MAGI. So keep that in mind.