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no it is not zero. you have to take the capital gains too in your calculation of taxable income and then find your bracket.. your taxable income is 436,000k less your deductions and exemptions based on your example. that would put a single in the 20% bracket and a couple in the 15%
you have to run your taxes in some tax software. although you will be taxed at 20% capital gains rate on the sale odds are at that level you will trip the amt tax.
that will tax all your other income at almost a flat rate except for a few items like mortgage interest and contributions.
it is very deceiving the way our tax sytem works as to what you will really pay when large capital gains or large deductions are involved.
Last edited by mathjak107; 05-06-2013 at 03:47 AM..
no it is not zero. you have to take the capital gains too in your calculation of taxable income and then find your bracket.. your taxable income is 436,000k less your deductions and exemptions based on your example. that would put a single in the 20% bracket and a couple in the 15%
you have to run your taxes in some tax software. although you will be taxed at 20% capital gains rate on the sale odds are at that level you will trip the amt tax.
that will tax all your other income at almost a flat rate except for a few items like mortgage interest and contributions.
it is very deceiving the way our tax sytem works as to what you will really pay when large capital gains or large deductions are involved.
that is assuming he was renting it out but he did not indicate that was the case.
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