Market place insurance tax credit and capital gains

[gopalv1957]

I have sold my primary residence property this month  on 21st Dec 2021 and made capital gain but less than partial exclusion allowed limit (partital exclusion was becasue of we lived there for more than 24 months before we sold and also moved to texas  from california due to job change of one of the owner. We are joint filers (me and my spouse , my son and his spouse ) all living in the same residence and joint owners. Will this income be included as income for Advance Tax Premium Credit and my annual income is less than $26000. When I called healthcare.gov their representative told me since this capital gain is less than allowed limit, no need to report. Can you please check and confirm if this is correct?

Thanks in advance

Venkatraman

[Bsch4477]

You will not have to report the home sale unless you receive a form 1099-S. Ask your realtor if you will be issued one. In any case the gain will not be included in your income for any reason. 

[Mike9241]

if you owned and live in the property for 24 months (930 days) or more in the last 5 years before the date of sale you are entitled to the full exclusion.

the allowable premium tax credit is based on modified adjusted gross income  - AGI with certain items added back. the home sale exclusion is not one of those items added back.

[Critter-3]

LOOK in the pile of paperwork you lugged home from the closing ... you will either have a 1099-S from the sale OR  an exemption worksheet stating you are exempt from the 1099-S form.   Your closing company and/or broker should be able to help you with this question.

[gopalv1957]

Thanks. Since I will be issued a 1099-S and though the gain is way less than allowable limit of $500K (for joint filers) so no need to worry about Tax premium getting affected.  Since there are two couple (husband and wife as joint owners of the property sold and capital gain out of this primary property sold and my share is way less than exclusion amount. 

Wanted to make sure that  APTC does not get affected as myself and spouse use market place insurance due to low annual income.

Thanks

Venkatraman

[gopalv1957]

Thanks. I will be issued 1099-s for half of the gain and my son will be issued another 1099-s for the other half. Both of us (two couples) are joint filers each and equally own the property with 4 owners in total. 

Your advise would be highly appreciated. 

Thanks

Venkatraman

[Critter-3 · Accepted solution]

Excluded income is not reported on an income tax return and thus will not affect the credit.