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Richard
Richard, Tax Attorney
Category: Capital Gains and Losses
Satisfied Customers: 54026
Experience:  29 years of experience as a tax, real estate, and business attorney.
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We are selling our second home (spend 6 months per year) for

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We are selling our second home (spend 6 months per year) for the last 5 years plus however not our primary residence. Our second home is in Arizona listed at $269,000. What is the capitol gains tax rate ?
Submitted: 7 months ago.
Category: Capital Gains and Losses
Expert:  Richard replied 7 months ago.
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Expert:  Richard replied 7 months ago.
The Arizona tax rate on long term capital gain is 4.5% of the gain....Sale price (less closing costs) in excess of your basis (i.e, purchase price plus the cost of any improvements). You get credit on your Federal return for the Arizona tax paid. On the Federal level, your gain is added to your other taxable income to determine the marginal tax rate. The tax laws concerning taxation of long term capital gains are as follows:0% applies to long-term gains and dividend income if a person is in the 10% and 15% tax brackets,15% applies to long-term gains and dividend income if a person is in the 25%, 28%, 33%, or 35% tax brackets, and20% applies to long-term gains and dividend income if a person is in the 39.6% tax bracket.In addition, starting in 2013, capital gain income became subject to an additional 3.8% Medicare tax for taxpayers with income at or above a certain threshold. This 3.8% Medicare surtax applies to taxpayers with “net investment income” in excess of threshold income amounts of $200,000 for single filers and $250,000 for married couples filing jointly. Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

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