Are capital gains from selling property or investments included on Marketplace applications?

• A. No, not included
• B. Included only if taxed
• C. Yes, included on Marketplace applications
• D. Included only if gain exceeds a threshold

Answer: (C)

The main idea is how income is counted to determine eligibility for subsidies on the Marketplace. The Marketplace uses MAGI, which is based on your income reported for tax purposes. Capital gains from selling property or investments are part of your gross income and thus raise your adjusted gross income (AGI). Since MAGI starts from AGI, those capital gains are included when calculating how much income you have to report. You should include them on the Marketplace application because they affect your MAGI and, in turn, your potential eligibility for premium tax credits or other subsidies. There isn’t a threshold that would exempt small gains—you report the gains (and they can influence subsidies even if you wouldn’t owe tax on them). If your gains are uncertain or change, you can update your estimate later. So capital gains are included on Marketplace applications.