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