TeriH
Employee Tax Expert

Retirement tax questions

Great Question!

Your math is spot on  for an anticipated $150k capital gains.  You would want to add to that basis of $81,000 if you make any capital improvements over time.  That would increase your basis and reduce your capital gain.

The capital gains calculation sits atop the tax calculation.  You said you are single, therefore at $125,000 gain would have a 15% capital gains tax.  The bracket is $47,026 to $518,900 for that 15% rate. 

 

There is no way of know what tax rates will do in the future.  If only we had a chrystal ball.  The only thing we know for certain, is what they are today.

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