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Richard
Richard, Tax Attorney
Category: Tax
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Experience:  29 years of experience as a tax, real estate, and business attorney.
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If I paid 215,000 for a beach condo 16 years ago in Indian

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If I paid 215,000 for a beach condo 16 years ago in Indian Rocks Beach , Fl. and sell it for 615,000 what percent capital gains tax will I pay when I sell. I am in the next to highest income bracket . I think around 32 percent.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. I'm presuming this beach condo is not your principal residence, is that correct? Thanks.

Customer: replied 3 years ago.

Thank you , no it is not my primary home and I never have rented it out.

Thanks so much for following up. I can't tell you exactly, because I don't know exactly how much taxable income you have...i.e., whether or not you are just barely in the second highest marginal rate or almost in the highest marginal rate. You will have $400,000 worth of long term capital gain which will cause you to be in the highest rate for all or a good portion of the gain. For 2013, 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, and
20% 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 will be 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.



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