It depends on your income level.
Assuming that you held the asset for a year or longer:
A capital gains rate of 0% applies if your taxable income is less than or equal to:
- $47,025 for single and married filing separately;
- $94,050 for married filing jointly and qualifying surviving spouse; and
- $63,000 for head of household.
A capital gains rate of 15% applies if your taxable income is:
- more than $47,025 but less than or equal to $518,900 for single;
- more than $47,025 but less than or equal to $291,850 for married filing separately;
- more than $94,050 but less than or equal to $583,750 for married filing jointly and qualifying surviving spouse; and
- more than $63,000 but less than or equal to $551,350 for head of household.
However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.
$820,000 - $739,000 = $81,000 capital gain
$81,000 x 0% = $0 tax
$81,000 x 15% = $12,150 tax
$81,000 x 20% = $16,200 tax
You do not qualify for the sale of your home exclusion.
You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home (or the first $500,000 if you're Married Filing Jointly) if:
- You owned the home.
- It was your main home for two years or more within the five years leading up to the sale.
- You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.
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