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New Member

I need to report the sale of a business. 50k long term capital gains, the remaining reported on 1099. When I enter in Turbo Tax the rate is higher than 15%. Why?

 
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Level 15

I need to report the sale of a business. 50k long term capital gains, the remaining reported on 1099. When I enter in Turbo Tax the rate is higher than 15%. Why?

 
Level 15

I need to report the sale of a business. 50k long term capital gains, the remaining reported on 1099. When I enter in Turbo Tax the rate is higher than 15%. Why?

The "sale of a business" usually is not on a 1099-misc form ... I highly recommend you upgrade to LIVE for one on one assistance  OR   seek a local tax pro so you get this done correctly. 

Employee Tax Expert

I need to report the sale of a business. 50k long term capital gains, the remaining reported on 1099. When I enter in Turbo Tax the rate is higher than 15%. Why?

Was this a sale of stock transaction or did you sell the assets?  If you sold the assets there may be some items that resulted in ordinary income.  Thus causing a higher tax rate.

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Level 15

I need to report the sale of a business. 50k long term capital gains, the remaining reported on 1099. When I enter in Turbo Tax the rate is higher than 15%. Why?

A capital gain will increase your AGI. This can sometimes result in other effects on your taxes. More of you social security benefits become taxable. Your Earned Income Credit is reduce or lost. Other credits are phased out.

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