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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?
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January 15, 2020
10:41 AM
last updated
January 15, 2020
10:41 AM
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CAPITAL GAINS ON SALE OF SECOND HOME
How much other income do you have besides the LT cap gains?
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪
January 15, 2020
11:06 AM
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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).
- For additional information about depreciation recapture please see IRS Publication 544 Chapter 3, page 27.
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January 15, 2020
11:10 AM
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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.
January 15, 2020
2:18 PM
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