I have read long term capital gains tax is zero (mar filing joint) if your income is less than 78,750. Is the income your adjusted gross income or your taxable income?

Forum|Forum|7 years ago
June 8, 2019
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this is for agricultural land owned more than 5 years

TurboTax Premier Windows

Best answer by Hal_Al

Taxable income, line 10 of form 1040.

The actual threshold is $78,950.

Using an example: your line 10 is $80,000 and that includes $10,000 long term capital gain (LTCG). $1050 (80,000-78950) of your LTCG will be taxed at 15% and $8950 will be taxed at 0%.

Turbotax will prepare the "Qualified Dividends and capital gains work sheet" to show the tax calculation. In some cases, a Schedule D worksheet will be used, instead.

Hal_Al

Answer

Level 15

Taxable income, line 10 of form 1040.

The actual threshold is $78,950.

Using an example: your line 10 is $80,000 and that includes $10,000 long term capital gain (LTCG). $1050 (80,000-78950) of your LTCG will be taxed at 15% and $8950 will be taxed at 0%.

Turbotax will prepare the "Qualified Dividends and capital gains work sheet" to show the tax calculation. In some cases, a Schedule D worksheet will be used, instead.