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ABC Accounting Group
ABC Accounting Group, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 184
Experience:  Business Consultant/Accounting Manager
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My wife and I are retired ,67 years old at end of 2016. Our

Customer Question

My wife and I are retired ,67 years old at end of 2016.
Our income is 35000 a year, the sum of each other's social security.
We are in Texas
Just us no dependents
We have $5,000 a year in interest earnings.
Using online resources we pay 0 income tax for 2016.
However, this year we will sell some land for $109000. This has been held for 8 years. Basis is $10,000.
Some resources say no taxes because our income is below $74000 a year, out of the 15% bracket. Others peg us at about $8,000 due income tax.
Any thoughts?
Thanks so much
Submitted: 2 months ago.
Category: Tax
Expert:  ABC Accounting Group replied 2 months ago.

Hi. Great Question.

Yes - 0% long-term capital gains rate (since you have held the land for over a year) for taxpayers in the 10% and 15% tax bracket - which meets the $74k/year.

Expert:  ABC Accounting Group replied 2 months ago.

You would have to pay long-term capital gains, if you were over the 15% bracket. The $8k is probably if you were over the 15% bracket.

If you have any questions, let me know. If not, a positive rating is very much appreciated. Thank you.

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