topic Capital Gains in Get your taxes done using TurboTax

Capital Gains

Javalos34 — Wed, 28 Jul 2021 16:16:35 GMT

I want to sell home. Capital gain would be around $100,000, long term since I would like to sell after 1 year. How does that affect my taxes? I’m projecting $75,000 of earned income.

Re: Capital Gains

Anonymous_ — Wed, 28 Jul 2021 16:21:12 GMT

The ownership and use tests of Section 121 require that you own and use the home as your principal residence for two years (out of the last five) leading up to the closing of the sale to qualify for the home sale exclusion.

See https://www.irs.gov/businesses/small-businesses-self-employed/sale-of-residence-real-estate-tax-tips

Depending upon the circumstances, however, you may qualify for a partial exclusion of gain.

See https://www.irs.gov/publications/p523#en_US_2020_publink100073096

Re: Capital Gains

Javalos34 — Wed, 28 Jul 2021 16:37:56 GMT

My situation is selling after 1 year which is considered long term capital gain. I have read that based on my income I will be taxed on this capital gain. If income is $80,000 or less, I will be taxed at 0% for capital gain. Is that correct?
I also don’t meet the NIiT of 3.8% due to income.