@NCperson - I appreciate the reply. We bought the house from my parents in April. They had their name on the house before we bought it from them.
So say my wife and I make $100,000 a year.
We bought the house for $82,000. And the house sells for $300,000. That is a $218,000 profit.
Do I add the profit from the sale ($218k) plus my annual income($100k) to determine my tax bracket?
So either I will be taxed at 22% (if we just go by our annual income) or I will be taxed at 32% (if we add our income plus the profit of the house).
I am not sure if we add the two (income + profit) or just determine the taxes that we solely make from our income.
Thank you again for the reply.
