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The exact amount will on you other income
. Capital gains
are taxed at three rates
, 0, 15, and 20 percent. The three rates are tied to your total taxable income
and the regular tax brackets that would apply to you. If your regular taxable income is under the 15% regular tax bracket, you would use the 0% capital gains rate until your total taxable income reaches the 25% bracket, the 15% capital gains rate until your total taxable income reaches the 450,000 dollar mark, and the 20% capital gains rate on all gain that raises your total taxable income above 400,000 dollars.
For simplicity sake, I am going to assume the first 400,000 dollars is in the 15% capital gains bracket. However, the total tax could be larger because the higher your non-capital gain income
the larger the capital gains tax. This would produce a Federal
capital gain of roughly 605,000 dollars, and CA would take a 305,000 dollar cut.
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