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selling two investment properties in one year
Hello,
I think and hope this is a basic question. If I sell two investment properties in one year, both of which I plan to pay taxes on, do the two sales push my capital gains into a higher capital gains bracket or are the sales done separately?
Are all of my gains combined or is each sale treated separately? Combining seems logical but at the same time it gets tricky combining cost basis and the possibility that one may be (but not definitely) short term and the other long term. Say for exampled my household income is 100k (married filing joint) and i make 100k on each sale. Do i put the 200k on top of my income and get pushed into the 24% bracket for a big chunk of this gain or is each done separately on top of income. i'm still confused how this would work if one were short term and the other long term.
I'm probably over explaining but trying to be as clear as possibly with my question as i'm not finding this example anywhere on the internet somehow. Maybe because nobody pays taxes on two homes in one year because it's dumb, but it's a unique situation 🙂
shorter version question -- for tax reasons, is this a really bad idea to sell both of these homes in the same year..... ? thanks!