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Does income & tax bracket have an impact on term capital…

Does income & tax...

Does income & tax bracket have an impact on long term capital gains when a property is sold?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

My father-in-law is selling his for family home with you acquired for a dollar from his mother over 50 years ago for $915,000. We are concerned about capital gains and the implications that they may have free and would like to know what we can do to delay them or circumvent them.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

My father-in-law is 95 years old and makes less than $38,000 in income yearly. The house was worth 500,000 into thousand 13 when his wife passed away

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3/23/2018
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,626
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Income, filing status, and tax bracket have an impact on long term capital gains.

The following link contains the 2018 capital gains tax rates:

https://www.fool.com/taxes/2017/12/11/long-term-capital-gains-tax-rates-in-2018.aspx

Gain is calculated on the DIFFERENCE between the basis (what was paid) and the sales price, but any improvements made to the property get added to the basis as well as any closing costs (if any) when bought. Closing costs from the sale reduce the sales price as well.

If this is his primary residence and he owned and lived in the property for 2 of the 5 years immediately preceding the sale, he can exclude up to $250,000 of any gain if he files single.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,626
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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