turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

TAYARBS
Returning Member

CAPITAL GAINS ON SALE OF SECOND HOME

Why does Turbo Tax show I owe Long Term Capital Gains Tax on the sale of a second home, when under IRS guidelines I fall in the Less than $78,750 AGI and below the 15% Tax Rate?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies

CAPITAL GAINS ON SALE OF SECOND HOME

How much other income do you have besides the LT cap gains?

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
HelenC12
Expert Alumni

CAPITAL GAINS ON SALE OF SECOND HOME

If at any point in time your second home was a rental, a portion of your gain may be taxed at a maximum tax rate of 25% for depreciation recapture (unrecaptured section 1250 gain from selling section 1250 real property). 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
TomD8
Level 15

CAPITAL GAINS ON SALE OF SECOND HOME

When you look at that $75,780 figure remember that, for purposes of determining your LT capital gain tax bracket, your LT capital gain itself is added to your ordinary income.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies