Hi NC person,
Son #1 $55,000 salary before deductions, single, his portion of cap. gain on sale of house is 90k.
His AGI is lower due to putting max of 20,500 into 401k. Also has student loan interest.
Son #2 26,000 salary before deductions, single, his portion is the same, 90k.
He has a small amount of student loan interest, a small amount of 401k, and a 6k contribution to trad. IRA.
It was over a year from date of death to sale of house, so it will be a long term cap gain.
Should son #1 also contribute 6k to trad. IRA to lessen his tax hit?
With this additional information do you think they will be able to deduct student loan interest and IRA contributions?
Is there a way I can get a preliminary idea of how much tax they will have to pay?
Thanks.
