Medicare's IRMAA surcharge uses tax data from two years prior, so a 2024 property sale raises 2026 premiums with no way to reverse it. A $167,000 capital gain pushed one couple's MAGI to roughly $347,000, triggering about $9,240 in extra 2026 Medicare surcharges for the year. Timing the closing to a different tax year, deferring Roth conversions, or using an installment sale can spread the gain and reduce IRMAA exposure.
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Bought in the late 1980s for $18,000, an hour from home, it carried a promise to build a cabin someday. Their agent listed it on a Tuesday. A cash buyer closed the following Monday.
A clean six-figure gain, a check to spread among the grandkids, and one loose end nobody mentioned at the closing table. The sale happened in 2024. Late in 2025, Social Security notified them what it would add to their 2026 Medicare premiums.
Medicare took nearly two years to send its bill. Medicare premiums rise with income for a relatively small share of beneficiaries. The Income-Related Monthly Adjustment Amount (IRMAA) affects roughly 8% of people with Medicare Part B.
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