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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Capital Gains and Losses
Satisfied Customers: 263
Experience:  Over 20 Years experience in resolving tough tax cases
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You sell a rental property you have over a year

Customer Question

you sell a rental property you have over a year gains of $50,000...wife and husband earned income in under 65,000....lowes tax you pay taxes on the capital gains.
JA: I love the idea of making big money with investments, but there are so many things that could go wrong. The Accountant will be able to help you. Please tell me more, so we can help you best.
Customer: is it true that you do not have to pay capital gains if you are in the lowest tax bracket
JA: Is there anything else the Accountant should be aware of?
Customer: I do not think so..
Submitted: 10 months ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 10 months ago.

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

To determine your tax bracket for the capital gains purposes you have to add the capital gains to your other income. What is your total other income? If your taxable income (that includes your capital gains) is over 75,300, you are in 25% tax bracket and your capital gains will be taxed at 15%.

Expert:  emc011075 replied 10 months ago.

Capital gains are taxed at lower tax rate. If you are in 10 or 15% tax bracket, your capital gains tax rate is 0. In 25-35% tax bracket, your capital gains tax rate is 15% and in the highest 39.6% tax bracket your capital gains tax rate is 20%.

Any questions?