Hello Reddit. Few questions for some tax gurus if you’ll indulge me.
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As I understand, long term capital gains are taxed at 0% based on taxable income up to 94k (married filing jointly). Correct?
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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?)
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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.
Posted by JMars491