The Money Mustache Community
Learning, Sharing, and Teaching => Taxes => Topic started by: Riptoast on October 17, 2018, 08:54:02 AM
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I understand the separate tax brackets for long term capital gains, and how to compute it in most scenarios. But what if I have 0 earned income in a given year but realize 100k profit in long term capital gains from selling an investment property? Filing single, would I get the first $12,000 (standard deduction) at 0% tax, then the next $38,600 at 0% (long term cap gains rate), leaving only $49,400 to be taxed at 15%? Or since my income from the single 100k sale puts me into the $38,601-$425,800 income bracket, would I have to pay the whole 100k at 15%? Or 100k - 12k standard deduction = 88k at 15%?
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Filing single, would I get the first $12,000 (standard deduction) at 0% tax, then the next $38,600 at 0% (long term cap gains rate), leaving only $49,400 to be taxed at 15%?
This one.
Don't forget any dividends you might get from other investments.
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Awesome, thanks!
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Does the 100k capital gain include depreciation recapture? The portion of the gain that is recapture is taxed at ordinary rates.