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My client is on a fixed income of less than 40k annually. She sold her house last year for a big gain above the primary residency exemption. Does she qualify for the 0% tax rate on long-term capital gain?
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It calculates a capital gains tax at the15% rate.
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Yes, You are correct a small portion is being taxed at 0%. But is there a reason why the entire gain is not at 0%?
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If shes on Social Security, dont forget to remind her that her Medicare Premiums will go up for 2023 due to this increase in income.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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@Clipperclerk wrote:
My client is on a fixed income of less than 40k annually.
If she started off with $40,000 of income, and adds in a large amount of additional income from the sale, that puts her income much higher. So if she had a $200,000 of taxable gain from the sale, her income is now $240,000. That means much of the capital gains would be taxed at 15%.
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Thank You all! Makes Sense