Inherited vacation property sale

Forum|Forum|6 years ago
February 3, 2020
8 replies
56 views

Years ago my sister and I inherited a vacation home from our parents. We sold it last year. I normally file jointly with my husband. This year I'll be reporting the gain on the sale of the vacation home on our taxes. My question is should I continue to file jointly? My husband is on Medicare and I am concerned that this added income will affect his premium. Since the property was something I inherited it doesn't seem right that it would affect his premiums. Thank you!

Not A Product Question

Anonymous_

Level 15

@Mom of Faith wrote:

Since the property was something I inherited it doesn't seem right that it would affect his premiums.

The problem is there is a different chart (with tax brackets) for married individuals who live with their spouse but file a separate tax return.

See Page 6: https://www.ssa.gov/pubs/EN-05-10536.pdf

Carl

Level 11

When a married couple files separate returns, they both *automatically* disqualify for a number of deductions and credits they would qualify for if filing joint. Additionally, more (if not all) of any social security income received becomes taxable income. So by filing separate what may be saved in premium payments will be offset by less deductions and credits, and higher taxes.