Investors & landlords

Here's how long term capital gains tax works.

 

Let's assume your other gross income is $60,000 and you claim the standard deduction for married filing jointly of $27,700.  Your taxable income is $32,300.  For 2023, if your taxable income is less than $89,450, your long term capital gains rate is zero.  Above that and your LTCG rate is 15%.  Assuming a capital gain of $195,000, the first $57,150 is taxed at zero% (because $89,450 minus $32,300 = $57,150) and the remaining $137,850 is taxed at 15%.