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@andys1027 wrote:
Ok...I am single and use the standard deduction. I just checked my GROSS annual income and it is just under $57k which is under the $61,750....do I still pay 15% of that now as capital gains tax or do I add the gross sale of $425k to my gross income, etc.?
You are misunderstanding the calculation. We are estimating that the taxable part of your capital gains after the exclusion will be about $61,000. Capital gains are taxed at 0%, 15%, or 20%, depending on your total taxable income (all other income including the capital gains). Based on how the income stacks, the first $5000 of gains will be in the 0% bracket and the remaining $56,000 will be in the 15% bracket. See illustration.
