topic One Time Capital Gains in Self employed

One Time Capital Gains

AbbyWay — Sun, 07 Jul 2019 22:42:33 GMT

I sold a rental property and had a capital gains that placed me in a higher tax bracket for one year only. My Medicare premiums will go up due to this. Will this increase in my monthly Medicare premium be only for one year? If so, how do I get the premium reduced after one year?

Re: One Time Capital Gains

Anonymous_ — Sun, 07 Jul 2019 23:13:55 GMT

Your premium will only increase for one year (assuming this was just a one-time event), but it will not be this year if your gain was last year or in 2019. CMS looks at your modified adjusted gross income as reported on your IRS tax return from 2 years ago.

See https://www.medicare.gov/your-medicare-costs/part-b-costs

Re: One Time Capital Gains

AbbyWay — Mon, 08 Jul 2019 00:00:14 GMT

Thank you for responding so quickly. I capital gain was reported for tax year 2018, so I assume I will be assessed the increase for calendar year 2020. After calendar year 2020 is over, how do I get this amount reduced? I checked the form SSA-44 and the items do no apply. I would appreciate your advice.

Thanks!!