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Lane
Lane, JD, CFP, MBA, CRPS
Category: Capital Gains and Losses
Satisfied Customers: 10098
Experience:  Have been providing Financial and Tax advice for 30 years.Concentration in Corporations, Estate, Income Tax and Business Planning
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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: 5 months ago.
Category: Capital Gains and Losses
Customer: replied 5 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  Lane replied 5 months ago.

Hi,

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It depends on your other income for the year of the sale.

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Long-term gains and qualified dividends taxed at

  • 0% if taxable income falls in the 10% or 15% marginal tax brackets
  • 15% if taxable income falls in the 25%, 28%, 33%, or 35% marginal tax brackets
  • 20% if taxable income falls in the 39.6% marginal tax bracket

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HOWEVER, if this is your primary residence, you can completely exclude 250,000 of profit (capital gain) or $500,000 if you file as married filing jointly

Customer: replied 5 months ago.
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Expert:  Lane replied 5 months ago.

Did you see my answer?

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If you'd like a phone consult, please accept the offer so that the private link will open and other's can't see your phone number here

Expert:  Lane replied 5 months ago.

Again, the gain is taxed based on your total taxable income (of which that gain is a part).

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SO lets say that you have a 100,000 gain and file as single. (Here are the REGULAR income tax brackets)

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Single Filing Status

[Tax Rate Schedule X, Internal Revenue Code section 1(c)]

  • 10% on taxable income from $0 to $9,075, plus
  • 15% on taxable income over $9,075 to $36,900, plus
  • 25% on taxable income over $36,900 to $89,350, plus
  • 28% on taxable income over $89,350 to $186,350, plus
  • 33% on taxable income over $186,350 to $405,100, plus
  • 35% on taxable income over $405,100 to $406,750, plus
  • 39.6% on taxable income over $406,750.

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So, as you can see, once that total income hits 36,900 the gain is taxed at 15%

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But again, if thei is your primary residence, (lived in the home for 2 out of the last 5 years), then you can exclude (not reportable, not taxable) $250,000 if you file as a single filer, or $500,000 if you are a joint filer.

Expert:  Lane replied 5 months ago.

Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

I know it takes an extra step, but JustAnswer won’t credit us for the work until you rate.

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Thank you!

Lane

I have a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice on three continents, since 1986

Expert:  Lane replied 5 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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Thanks

Lane

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