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Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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I have a Capital Gain tax question in referance what Obama

Resolved Question:

I have a Capital Gain tax question in referance what Obama will do if he is elected. I just retired this year and need to sell some stock I have had over 10 years to clear up some debt and live on for next year. The amount will be about $400,000 from the sale. This will be my only form of income I will make zero. It is my understanding he wants to leave the 0/15% in effect for people who make less that $250,000 yearly and 20% above that. My question with no income what would I pay and is there any chance he will make it retroactive to 1/01/09. The reason I don't want to sell this year is I will become a Florida residant early next next year and want to save the state tax. If you could give me some direction it would be great. Thanks!
Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.
Will the $400,000 be the amount of the gain or the amount of the gross proceeds received from the sale?
Customer: replied 8 years ago.
It is almost all capital gain.
Expert:  Bill replied 8 years ago.
If it will be your only income then a portion of it will be tax-free (at a 0% tax rate) and the balance will be taxed at 15%. The portion that will be tax-free will depend on your filing status, age, deductions, and exemptions. For example, if you are under age 65, file single, and do not itemize then $32,550 will be tax-free and $358,500 (after your standard deduction and personal exemption) will be taxed at 15% for a total tax of $53,775. There is very little chance that if the capital gains tax rate is increased, it would be retroactive to 1/1/09. However, anything is possible with tax policy changes.
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