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Tax law changes
To add to the great answer that @darin_w already gave you, let me point out one other item that is commonly missed.
To calculate which tax rate to use, note that the income amount to use is the income including the capital gain.
For example:
Married Filing Jointly
$70,000 W2 income
$100,000 capital gain
It is very common for people to look at the table and think "oh, my income is $70,000, so I'm in the 0 percent capital gains bracket. Why am I paying tax on the gain?" This is not correct. Your income for that year is $170,000 - the total of all income including the gain in question. In that case your gain would be taxed at 15%.
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‎September 28, 2022
10:55 AM
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