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Level 1
posted Jun 5, 2019 11:48:32 PM

Is the sale of inherited property included in the household income that determines the healthcare premium tax credits?

0 4 1031
4 Replies
Expert Alumni
Jun 5, 2019 11:48:33 PM

Yes. Sale of inherited property would generally generate capital gains. And capital gains are counted as income for the calculation of the healthcare premium credit.

Please read this document from the Marketplace for more information:

https://www.healthcare.gov/income-and-household-information/income/

New Member
Jun 5, 2019 11:48:35 PM

Actually, sale of inherited property often does no generate capital gains..it often generates modest admissible capital losses.  If the property is residential property that wasn't used for personal use but was held as an investment property until sold. But I agree that if thee are capital gains those gains count in household income.
In any event..the sales price, itself, isn't counted as income which may have been the main concern

Level 1
Jun 5, 2019 11:48:36 PM

Thank you TurboTaxMinhT  and BobB7 for your helpful responses

Returning Member
Feb 4, 2020 3:40:36 PM

Since inherited property is not counted as income under your federal wages, why would this be income for the healthcare marketplace? When you figure your tax credit for the year no one knows they will be losing a loved one. If it's not considered income for federal tax purposes then it would make sense it would not be considered income for marketplace tax credit.