Timing sale of property to avoid Medicare premium spike

[mathjak107]

hypothetically than if you made it your primary for 4 years and sold it you would own the property 20 years , it served 16 years as a non qualified rental property and 4 years as a qualified primary in the last 5 years . so 4 years is 1/5 of 20 so you would be allowed 20% of the exclusion .
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[TheShadow]

But we haven't lived in it 2 out of the last 5 years, which is the primary requirement for the exclusion. We haven't lived there in 16 years and have no intention of it ever being primary again because it's clear across the country from our retirement area. We're going to find a realtor who is a QI, sell and reinvest the full sale price.

[mathjak107]

just giving you a hypothetical example of the mathif you did . it may very well not apply.

be careful with 1031 exchanges . kicking the can down the road may hurt you . as an example many of those who did 1031 exchanges and now want to sell shot themselves in the foot .

they could have paid 15% in capital gains taxes . now they not only jumped to 20% if your income gets high enough but there is an almost 4% aca/medicare tax too if you go over a certain income .

i got nailed on all of the changes .