Considering selling investment condo in 2023. Long term capital gains. Owned since 2008. Rented out since 2016. I am low income:Social Security. What IRS tax due or base?

[sharonwhughes]

Can anyone help with estimate calculator? All I am getting is the answer of 15% on the gain is that correct since our normal income is so low?

[Bsch4477]

For 2023, you may qualify for the 0% long-term capital gains rate with taxable income of $44,625 or less for single filers and $89,250 or less for married couples filing jointly. The rates use “taxable income,” calculated by subtracting the greater of the standard or itemized deductions from your adjusted gross income. Be aware that if you have a large capital gain it could put you into a higher tax bracket. 

[TomD8]

Be aware that "taxable income" includes the capital gain itself.

[sharonwhughes]

Thank you! Is there a way to separate my actual income from the capital gain. Is this what is meant by the term: 'exclusion'??? Our income is very low and have not had to pay tax for many years - now it would seem that we might be looking at 15% on the capital gain: added to our actual income the amount is significant. But, I did think that we would take our taxable income and add it to the gain, thereby coming up with an even larger figure at which point we would pay tax on that figure. Because, it really is like suddenly get a major pay rise, isn't it? Does this sound correct to you? I appreciate your input. 

[Bsch4477]

There’s no “exclusion “. But your capital gain doesn’t get taxed until your taxable income reaches that 80K level. The gain is taxed separately from your regular income. But from what you posted previously you have no regular taxable income. 

[Critter-3]

Is there a way to separate my actual income from the capital gain.

NO ... all income must be entered on one single tax return.  Then the taxes on the ordinary income, recaptured depreciation and the capital gains are calculated accordingly on the Qualifying Dividends & Capital Gains worksheet where the max taxes you will pay on the cap gains is 20%.  

[Hal_Al]

Try this tool https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1. Enter your regular income first to see the regular tax. Then add the sale to see the effect.
Enter the difference between the sale price and what you paid for it originally as a long term capital gain (LTCG). Enter the depreciation you've taken (or should have taken) over the years (depreciation "recapture") as other income. Depending on how much total income you have LTCG are partially taxed at 0% or 15% (or 20% and/or 23.8% for higher income people). Depreciation recapture is taxed at your marginal rate, but not more than 25% (the Taxcaster tool is not capable of applying the 25% cap, but that shouldn't matter in your case).