bobjames
New Member

I have read long term capital gains tax is zero (mar filing joint) if your income is less than 78,750. Is the income your adjusted gross income or your taxable income?

this is for agricultural land owned more than 5 years

Hal_Al
Level 15

Get your taxes done using TurboTax

Taxable income, line 10 of form 1040.

The actual threshold is $78,950.

Using an example: your line 10 is $80,000 and that includes $10,000 long term capital gain (LTCG).  $1050 (80,000-78950) of your LTCG will be taxed at 15% and $8950 will be taxed at 0%.

Turbotax will prepare the "Qualified Dividends and capital gains work sheet" to show the tax calculation. In some cases, a Schedule D worksheet will be used, instead.

View solution in original post

Get your taxes done using TurboTax

you probably misread it.
Do a trial return in TurboTax and you will get the answer.