Selling a Classic Corvette Triggers Medicare Surcharge for Retiree
A 76-year-old Ohio man sold the base-model Chevrolet Corvette he purchased new in 1972 for $95,000. The sale generated approximately $89,000 in long-term capital gains when factoring in his original purchase price and expenses. This gain added to his baseline retirement income of around $70,000, pushing his modified adjusted gross income (MAGI) near $159,000 for 2026. Under Medicare's two-year lookback rule, this MAGI level could trigger the Income-Related Monthly Adjustment Amount (IRMAA), increasing Part B and D premiums in 2028. Based on current projections, these surcharges would add about $2,885 annually to his healthcare costs for that year. The article highlights strategies retirees can use before December 31 to reduce MAGI—such as adjusting cost basis or harvesting capital losses—to potentially avoid higher Medicare premiums.
Topics: capital gains tax IRMAA surcharge Medicare retirement income