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According to link provided, I would not owe taxes on the profit.

Owing taxes on the profit and including it in AGI are two different things.

For ACA purposes, the important part is including the profit in AGI. Let's walk very quickly through the process.

1. Determine the gain on the sale of the house.
2. Determine the amount of gain which you can exclude from income. (That's the $250k/$500k you hear talked about frequently.)
3. If 1 is bigger than 2, you will include the difference in your income and, therefore, your AGI.

This is what you need to be concerned about for an ACA subsidy. But the tax return itself continues on to figure out how much tax you owe on the taxable portion of your gain. It's quite possible to have a taxable gain on the sale of your home, but to have no tax owed. (You could have deductions which offset the gain, or the gain could qualify for the 0% tax rate.)

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