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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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my wife and I have owned our house for thity eight years and

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my wife and I have owned our house for thity eight years and if we sold our house today we would make approximately one and one half million dollars in capital gains. The house isa in our living trust with our four children as equal heirs. What would we have to pay in capital gains tax?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

Assuming that you and your spouse used the property as your primary residence at least two-out-of-last-five years before the sale and that you are filing joint tax return - you may exclude from taxable income $500,000.

$1,000,000 would be your taxable income, but because you owned the property more than a year - the gain will be treated as long term and would be taxable at reduced rate up to 15%.

So - your additional federal tax liability is estimated as $150,000 plus you might be liable for AMT tax - depending on your other income and deduction - ~$2000

CA taxes will also be due 9.3% or $93,000 plus additional 1% for part of your income above $1,000,000

 

So I would estimate your total tax liability as ~$245,000.

 

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