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I currently live aboard, earn $88,000 a year and pay taxes where I reside. The $88,000 is under foreign exclusion limit so I don`t pay US taxes on this amount.
I also gross some $130,000 in rental income in the US. However, my mortgages, losses from previous years and yearly expenses reduce my adjusted gross income to zero.
2016 I will be returning to the US to manage my rental property. Rental income will be my sole income. My adjusted gross income for 2016 will likely be zero again as losses from previous years, deprecation, expenses etc will reduce the net earnings.
Now.....I will be joining the national health care plan and not sure of my modified adjusted gross income.
Do I need to add back in all the rental income making my modified adjusted gross income $130,000 a year as opposed to an adjusted gross income of $0?
Is the $25,000 deduction I get for managing the properties the only write off I can declare or am I missing something?
Would you really depend on the advice given on this forum rather than a qualified CPA/tax advisor?
No, and I`ll ask my accountant in Feb. about this.
However, in the meantime if anyone has a general idea of how modified adjusted gross income would be applied to the situation I mentioned in opening post that would be great. This hasn`t been an issue because I`ve been living abroad but I plan to return to the States next year.
My overseas income is under the foreign exclusion amount so that`s straight forward and my adjusted gross income earned in the States (rental property) has been reduced to zero after expenses/deductions.
However, after moving back I would like to join Obamacare which is based on income (among other things)
I have a gross rental property income of some $130,000 but as I mentioned when you factor in the deductions/expenses my adjusted gross income is $0
But if I understand correct Obamacare is based on modified adjusted gross income which means I must add back the $130,000 net income which the adjusted gross income has at $0.
I won`t be working in the States except to manage my properties. I understand I get a $25,000 deduction for managing the homes but that all I seem to find.
Again I`ll speak with my accountant but in the meantime anyone who can provide a basic idea of how modified adjusted gross incomes works in connection with invest property deductions (outside of the $25 grand for managing) that would be great.
I have sister in San Antonio TX area who took SS early--at 62 when she stopped teaching at Catholic girls' school--no pension with them--and beside SS which was reduced amount, she also has rental income (not in your range) from properties she owns in SA...
She went on ACA insurance and was eligible for a subsidy because of her low income
I don't know how her income was actually computed though--
But know that she had difficult time doing her taxes and couldn't believe she got the subsidy as refund on her tax filing...
Didn't mean to come across as rude--but there are so many nuances with ACA some of which have not come into play--that your situation seemed too complex for most people at address accurately
No, and I`ll ask my accountant in Feb. about this.
However, in the meantime if anyone has a general idea of how modified adjusted gross income would be applied to the situation I mentioned in opening post that would be great. This hasn`t been an issue because I`ve been living abroad but I plan to return to the States next year.
My overseas income is under the foreign exclusion amount so that`s straight forward and my adjusted gross income earned in the States (rental property) has been reduced to zero after expenses/deductions.
However, after moving back I would like to join Obamacare which is based on income (among other things)
I have a gross rental property income of some $130,000 but as I mentioned when you factor in the deductions/expenses my adjusted gross income is $0
But if I understand correct Obamacare is based on modified adjusted gross income which means I must add back the $130,000 net income which the adjusted gross income has at $0.
I won`t be working in the States except to manage my properties. I understand I get a $25,000 deduction for managing the homes but that all I seem to find.
Again I`ll speak with my accountant but in the meantime anyone who can provide a basic idea of how modified adjusted gross incomes works in connection with invest property deductions (outside of the $25 grand for managing) that would be great.
I think they go strictly by the tax form. My sister has rental income but no job at times and she got subsidy. Like last year she only paid $90 a month, she is over 60. So that's a bargain.
Yes, I know about the foreign earned income exclusion getting tossed back but that`s only for a year.
It`s my rental income I`m worried about.
From what I read my adjusted gross income might be zero but when it is modified (and from what I have read) my gross rental gross gets tossed back in.
I keep thinking I`m missing something because that doesn`t sound right. When my adjusted gross rental income is modified my entire gross income is then put back?
And the only deduction allowed is the $25,000 for managing the properties?
This doesn`t sound right.
Again I`ll have to run this by my accountant. However, if anyone can tell me what other rental property deductions I might qualify for outside of the 25 grand for managing the homes that would be great.
I currently live aboard, earn $88,000 a year and pay taxes where I reside. The $88,000 is under foreign exclusion limit so I don`t pay US taxes on this amount.
I also gross some $130,000 in rental income in the US. However, my mortgages, losses from previous years and yearly expenses reduce my adjusted gross income to zero.
2016 I will be returning to the US to manage my rental property. Rental income will be my sole income. My adjusted gross income for 2016 will likely be zero again as losses from previous years, deprecation, expenses etc will reduce the net earnings.
Now.....I will be joining the national health care plan and not sure of my modified adjusted gross income.
Do I need to add back in all the rental income making my modified adjusted gross income $130,000 a year as opposed to an adjusted gross income of $0?
Is the $25,000 deduction I get for managing the properties the only write off I can declare or am I missing something?
Thanks for any help.
Your modified adjusted gross income for the Obamacare credit begins with your adjusted gross income and makes a few adjustments. Your adjusted gross income includes the amount reported for net rental income or loss as the case may be. So your modified adjusted gross income is not your gross income of the $130,000 you provide. You're accountant can explain better because he/she knows your situation. Give him/her a call rather than seek your answer here. You deserve it. It's a quick answer for someone familiar with your situation and you may not even be charged for a quick answer.
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