Does this put me in the 0% or 15% tax bracket?

Question

I own a property that I bought for 40k, and will now sell for 110k. I would like to sell it this year.

My income this year was 38k. According to tax law that I've read online, this puts me in the 0% capital gains tax bracket.

Does this put me in the 0% tax bracket for 38k of income? Or would the 70k profit on the sale of my house be included, which brings me into the 15% bracket?

Much thanks for the info.

Basit Siddiqi · Answer

The sale of the property at $110,000 that was purchased for $40,000 results in a $70,000 gain.

That will put you over the bottom two brackets.
As a result, a portion of the $70,000 capital gain will be at 0% and some at 15%

Don't forget about state taxes as there is no similar exemption at the state levels.

Ashish Acharya · Answer

Depends on your filing status. Part 0 and part 15%, most likely.

Does this put me in the 0% or 15% tax bracket?

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