Long term capital gains on the sale of primary residence

[Rcamp1]

I'm selling my primary residence after 8 years of ownership. The purchase price was $445,000, added $10,000 in upgrades, selling for $1,235,000, am a single taxpayer, and will make approx $35,000 income in 2021 (same for 2020). How much federal tax will I owe?

[rjs]

Here's a rough guess, based on 2020 tax rates and the information you have given. The total federal tax on the sale of your home will be about $96,300, in addition to about $2,500 tax on your $35,000 of regular income. The tax on the sale will be reduced if you pay a broker's fee, which you didn't mention.

[Rcamp1]

Thank you fir the quick response. Yes I failed to mention the $87k in selling costs. What is the revised estimate now?

Cheers

[rjs]

Revised rough estimate, using 2020 tax rates: $75,600 federal tax on the sale of your home, plus $2,500 federal tax on your ordinary income. Total federal tax $78,100.