I have a taxable investment account that I would like to withdraw money from to use as a down payment on a house. By April, all of the money that I am planning on using for the down payment will have been invested for at least 1 year (so now considered 'long term' for capital gains purposes). I am trying to estimate how selling these investments will affect my taxes.
I know that if my spouse and I are in the 15% tax bracket, then we do not have to pay taxes on long term capital gains. Our total salaries bring us into the 25% bracket, but after factoring in 403b, Trad. IRA, and HSA contributions, we are easily into the 15% bracket. So our taxable income that will be listed on line 43 of our tax return will be less than the upper limit of the 15% bracket. Does this mean that we will pay no taxes on the capital gains, or will we still pay taxes because of the level of our salaries. Thanks
