Capital gains tax help

[David Rutledge]

Hi everyone, 

I purchased an investment property in 2017 for 67k and I’m selling it today for 91k. I am wondering if I will be charged capital gains on this considered that my wife and have travelled overseas for the past seven months and have had no income. This means that our annual income is very low. I am well below 30k for the year and my wife and I may be below that even together.

I know cap gains is charged at certain levels depending on income so I am wondering if I am going to have to pay that tax co side ring my income is so low?

Thanks so much in advance.

David 

[Ashish Acharya]

Originally posted by @David Rutledge:

Hi everyone, 

I purchased an investment property in 2017 for 67k and I’m selling it today for 91k. I am wondering if I will be charged capital gains on this considered that my wife and have travelled overseas for the past seven months and have had no income. This means that our annual income is very low. I am well below 30k for the year and my wife and I may be below that even together.

I know cap gains is charged at certain levels depending on income so I am wondering if I am going to have to pay that tax co side ring my income is so low?

Thanks so much in advance.

David 

Thanks @Amanda G.

 If your total income with the cap gain is below, around, 77k, there is no tax on cap gain.

If you depreciated the property because it was rental, you will have to pay depreciation recapture tax. It will be lower of your actual marginal tax rate or max 25%.