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Just so you know the cost basis of the inherited property is its value at the time of death so if sold soon after that time there would be no gain. But to answer your question the program will calculate the capital gains tax accordingly.
I did not sell right away and I made $10,000, however I am in low income bracket and they are not calculating me at 0 rate for capital gain. So, how do I do that?
Remember that the capital gains is added to your AGI. Did that put you into a higher tax bracket? Look at the capital gains worksheet to see how the tax is calculated. TurboTax does this accurately.
Thanks for responding but our AGI filing jointly is $20,000 before the gain so only 30,000 total. I do not understand why my gain is being taxed.
@choirblonde58 wrote:
Thanks for responding but our AGI filing jointly is $20,000 before the gain so only 30,000 total. I do not understand why my gain is being taxed.
Only long term gain gets the zero percent rate. Inherited property should be treated as long term gain. Did you pick "inherited" as the method you acquired the property?
I believe so but will re-check tomorrow and see if anything changes. Thanks!
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