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emc011075
emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 2305
Experience:  Master Tax Adviser and Enrolled Agent
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My soon to be son-in-law has sold his business and will have

Customer Question

My soon to be son-in-law has sold his business and will have a capital gains tax this year on $250,000. Tax-wise, is it better to marry my daughter now or wait till next year? She has an annual income of $100,000, and he is now unemployed.
Submitted: 3 months ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 3 months ago.

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

Do they have any dependents they would claim?

Customer: replied 3 months ago.
No dependents, they have not yet married and have no children
Expert:  emc011075 replied 3 months ago.

At their income level it will not make much difference if they get married and file jointly or separately or don't get married and file single.

Customer: replied 3 months ago.
Is the capital gains tax the same if they get married or stay single?
Will the capital gain make her pay more in income tax if they marry?
Expert:  emc011075 replied 3 months ago.

The capital gains tax rate will be same - 15% - regardless how they file, jointly, separately or singles.

Customer: replied 3 months ago.
Will the capital gain put her into a higher tax bracket for her income?
Expert:  emc011075 replied 3 months ago.

No, it will not. It will be taxed at 25% but more of the capital gains will be taxed at 15%. If they file single, her income will be taxed at 28% but less of capital gains will be taxes. The capital gains will be reduced by the deduction and exemption.

Expert:  emc011075 replied 3 months ago.

It will come to about the same. And if they get married they can still choose to file separate.

Customer: replied 3 months ago.
Thank you.
Expert:  emc011075 replied 3 months ago.

You're welcome. Is there anything else I can help you with today?

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. You find the rating bar on the top of the page – 5 stars. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

Customer: replied 3 months ago.
They live in San Francisco, Caifornia. Would it make a difference in State or Local taxes?
Expert:  emc011075 replied 3 months ago.

Cities do not tax capital gains, only earned income. On state level the difference is about $100 more if they file jointly.

Customer: replied 3 months ago.
Thanks.

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