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Patrick H
Returning Member

Florida questions 3

Hi, 3 major events happened this year and was wondering how it may effect my taxes: 1-sold my home in March, will have capital gains as a single person of about $68K over the $250K, what % is it based upon? ( I do have about $40K plus of expenses on the home to offset) 2- I went on full disability this year from my W2 job at 60% of my income which appears to be untaxed, no tax is taken out. I will have a small W2 and I believe I selected pre-tax. Will I have to pay taxes? The company released me several weeks ago too. 3- I could not find a new home so I bought a Class A RV to live in full time, is there any benefits to it being my primary and since I converted the capital gains to this purchase in 4 months, can that be applied to capital gains from my house sale? ARe there any other tax issues I should be concerned about? Thank you so much!! Patrick
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1 Reply
PaulD CPA
Expert Alumni

Florida questions 3

Hi Patrick,  based on those numbers, it appears that the taxable gain on the sale of your home will be about $28k.  The good news about that is that it's a Long-Term Capital Gain and for a Single person with Taxable Income under $41,675, the tax rate is 0% (Zero).  That Taxable Income amount is generally your income minus deductions (that's at least $12,950 or 14,350 if 65+ years old). Based on what you wrote abut question #2, it seems you're likely to have Taxable Income below that $41,675 amount. If not, the excess will be taxed at 15%.

As for Question #2, the answer depends on the source of the disability income you're receiving.  Here's a good article that explains:    Is disability income taxable?

For Question #3, no the capital gain from the sale of your home can't be reduced because of your purchase of the RV.  There are no tax benefits of it now being your primary home although the sales tax you paid is a potential itemized deduction (although choosing the Standard Deduction may still be more beneficial).

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