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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Capital Gains and Losses
Satisfied Customers: 263
Experience:  Over 20 Years experience in resolving tough tax cases
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What is the tax rate on profet from selling a home

Customer Question

what is the tax rate on profet from selling a home
Submitted: 4 months ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 4 months ago.

Hi. My name is ***** ***** I will be happy to help you.

It depends. Is it your primary residence? Is it a vacation home? Investment property? Rental?

First you will need to determine your capital gains:

sales price

- purchase price

- improvements

- expenses of sale

- exclusion (if applicable)

+ depreciation (if applicable)

= capital gains

Next you will add your capital gains to your other income to determine your tax bracket. Your capital gains will be taxed as followed:

10 - 15% tax bracket - 0% capital gains rate

20 - 35% tax bracket - 15% capital gains rate

39.6% tax bracket - 20% capital gains.

Your capital gains tax rte will be between 0 and 20% depending on your tax situation.

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