Are The Proceeds From The Sale Of Your Primary Residence Subject To The 3.9% Medicare Surtax Or Not?

One article includes the primary residence in calculating the application of the medicare surtax while a second article specifically states only a second home is included as investment capital in calculating whether the tax will be applied.

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4 Responses to “Are The Proceeds From The Sale Of Your Primary Residence Subject To The 3.9% Medicare Surtax Or Not?”

  1. falsi fiable says:

    Only gains in excess of $250,000 for single taxpayers or $500,000 for married taxpayers.

  2. Wayne Z says:

    If you have lived in the home for 2 of the 5 years prior to the sale, the first $500,000 in gain is tax free if you are married ($250k if Single).
    So, if you qualify for the above exclusion, there are no taxes at all.
    However, if your gain is above these amounts or you selling prior to 2 years, part or all of your gain could be subject to the new medicare tax.
    The above exclusion would apply to about 99% of primary home sales but there are always going to be exceptions.

  3. Chas says:

    Maybe. Depends on the gain.
    It only applies to home sale profits:
    .. If the profit exceeds the $500,000/$250,000 primary residence capital gain exclusion.
    .. When the portion of the profit above $500,000/$250,000 causes the seller’s AGI to exceed the threshold amounts.
    See the article.

  4. tro says:

    you mention ‘articles’ and what is the source of these ‘articles’? from an organization that specializes in cap gains?
    if you sell a residence that qualifies for the exclusion you very likely are not even reporting it at all, if the sale does NOT qualify then of course you are reporting the sale and gain which will become part of your gross income and if the amount reaches the amount the new 3.9% rate will apply, of course you will pay it

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