Hello Reddit. Few questions for some tax gurus if you’ll indulge me.

    1. As I understand, long term capital gains are taxed at 0% based on taxable income up to 94k (married filing jointly). Correct?

    2. I made 38k in taxable wages this year. I also, sold my primary residence. Netted about 135k (but this is considered non taxable income per section 121 correct?)

    3. Now, if I sell a rental property I own and gross say 80k before taxes. I would still owe 0% on any money made on the sale up to around 56k (my wages+amount up to 94k)

    I’m just trying to sell a house I’ve held onto for way too long and squeeze as much value out of it as I can while selling at a price that’s not gonna have it sitting on the market for months. My other option is potentially wait until the new year to sell it, as I would have nearly zero taxable income and could presumably lower my liability even further.

    If what I’m saying doesn’t make sense I’m sorry.

    Thanks.

    Capital gains on rental property
    byu/JMars491 intax



    Posted by JMars491

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