Capital gains income limits

[Rrush]

I just sold my home and made a profit of 111,000. My husband had been out of work for six weeks and we decided to move to another state to start over. Our combined income for 2022 will be around 36,000. Will we still owe capital gains tax with such a low income. Also we lived in the house for 1 1/2 years and it has been three year since we have taken the exemption selling a home

[fanfare]

your AGI is no longer low, it is $147,000.

@Rrush 

[Mike9241]

your sale may qualify for a partial exclusion 

two possible reasons

1) unforeseen circumstances - the primary reason for the sale is the loss of his job that would make it difficult to pay basic living expenses  or

2) change in job location  - the new place of employment is at least 50 miles farther from the taxpayers's old home than the former place of employment 

1) the full exclusion is $250K for each of you

2) number of days/months each of you used it as a main home  H)____ W______

3) number of days /months owned by either of you. use the longest of the two if they are different

4) smaller of 2 or 3

5) number of days since last used home sale exclusion measured by the time between sales

6) smaller of 4 or 6

7) divide 7 by 730 if using days for above or 24 if using months for above 

😎 exclusion multiply line 1 for each of you by line 7

if the property was ever a rental different rules apply

you may want to consult a tax pro when it's time to do your return.

[rjs]

To answer your question directly, if you owned and lived in the house for 1 1/2 years before you sold it, your maximum exclusion if you file jointly will be around $375,000. Since your profit is only $111,000, it looks like you will be able to exclude the entire profit. So based on these rough numbers, you would not have to pay any tax on the profit.

Note that the amount of your other income has nothing to do with this calculation of the partial exclusion.