Question: My wife and I sold our primary residence in 2019 with a capital gain of $100,000. We meet the certain conditions to exclude the first $500,000 of gain from the sale of our home from our income and thus don’t have to pay taxes on it to the IRS. Because of this fact, is this $100,000 capital gain not counted as income from Covered CA stand point and not affecting the Advance Tax Credits we receive? Thanks
Answer: No. While your adjusted gross income includes capital gains, the capital gain from selling your home is excluded from tax in your case, it will not affect your taxable income.