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Ask Jonathan Tierney Your Own Question
Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 307
Experience:  Tax Accountant at Praxair, Inc.
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We are a married couple filing jointly and we are thinking

Customer Question

We are a married couple filing jointly and we are thinking of selling our vacation home which we purchased in 1955, would our capital gains be taxable? We were in the 15% bracket (gross) in 2014, and the taxable income was $47,557 after deductions? We are on Social Security.
Thank you,
Doreen Morris ***@******.***
Submitted: 1 year ago.
Category: Tax
Expert:  Jonathan Tierney replied 1 year ago.

For people in the 15% tax bracket the long term capital gains rate is 0%, though a large capital gain could push the rate higher. What do you expect to sell the home for and do you know how much you paid for it plus any costs of improvements?

Customer: replied 1 year ago.
It is waterfront property on Puget Sound. We do not have a market analysis yet but will probably get one this week.
The property is 60 ft wide and we are being taxed for .77 acre. We put a new cabin in 1980 which costs about
$100K.
Customer: replied 1 year ago.
What is the limit on selling price as far as not having to pay capital gains?
Customer: replied 1 year ago.
Also my husband finished most of the cabin himself other than the shell and rough-in plumbing. If we have to pay
capital gains is labor he put in considered in the cost of the cabin.
Customer: replied 1 year ago.
We need to wait until we get a market analysis
Expert:  Jonathan Tierney replied 1 year ago.

If your taxable income is above $74,900 for 2015, you will start to be taxed at the 15% tax rate for capital gains. If your income and deductions stayed the same as last year, a gain of greater than $27,343 would mean you would start to pay capital gains taxes.