Updated about 6 years ago on . Most recent reply
Do i qualify for 0% capital gains tax?
Help me confirm my google search, so i can avoid the trouble of doing a 1031 before my property closes.
I have owned this house for more than a year, (i can't claim it as a primary residence, but i think that only matters for 2+ years, right?). I just want to make sure if qualifies as a capital gains tax, and not added to my income. I just went into DD. Im going to make 180k profit on the house. During this year i had no other source of income, so my only "income" is this house.
So, my question. Since i had no other income, i assume i fall under the 38k dollar income bracket, which would put me at a 0% capital gains tax? Am i missing something?
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- Tax Strategist| National Tax Educator| Accepting New Clients
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This throws a lot of people off
It's kind of a circular calculation- your Capital gain tax rate is based on your total income, and your total income includes the gain.
So if your actual profit is $180k (often what people consider profit isn't true taxable gain) then your income is now $180k (Give or take for deductions/credits) for the year- and your gain will be based on that accordingly.
