We had capital gain on the sell of some property. I read that if you are in the 15% tax bracket which we are, we would not have to pay taxes on this gain. When are taxes were completed we ended up paying quite a bit due to this sale. Is the reason for this due to the capital gain was added to our income and thatswhy we had to pay and not due to capital gains?
Hello, when calculating the capital gains tax you would include the gain to determine your tax bracket, so if with the gain you are in the 25% bracket they still will only tax you at a maximim of 15%. Thanks Tom
The 15% tax would be on the Capital gain portion of your income
Even with the capital gain, we were still in the 15% tax bracket
So if we are in the 15% bracket with this income, should we have had to pay taxes on this?
What was your adjusted gross income? I am assuming you are married , any chilkdren
$184294.00 an no children we can claim, they are married.
This amount was with the added capital gains
The capital gains amount was $114424.
That actually puts you in the 28% rate on the top end, did you have a large amount of itemized deduction?
The tax on the capital gains would have been $17,000 and your regular income would have been taxed in the 25% range with your exemptions and deductions.
thank you for your help
25 years experience in Tax preparation