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Is gain on the sale of home counted as taxable income? 0 percent, 15 percent or 20 percent per income tax bracket is based on ordinary income, not capital gain?

For example, my income is $44000, which is in 0% bracket.
But if my sale of house has $150000 profit, after $250000 reduction of being primary residence. 
My taxable income is now $44000+$150000 =$194000? then it is subject to 15% tax bracket, not 0% because of my ordinary income?
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5 Replies

Is gain on the sale of home counted as taxable income? 0 percent, 15 percent or 20 percent per income tax bracket is based on ordinary income, not capital gain?

Part of the capital gains will be taxed at 0% and part at 15%. About $14,500  will be taxed at 0% and about $135,500 will be in the 15% tax bracket. 

Is gain on the sale of home counted as taxable income? 0 percent, 15 percent or 20 percent per income tax bracket is based on ordinary income, not capital gain?

Thanks for your response. 

What is the $14,500 you mentioned? 

Is gain on the sale of home counted as taxable income? 0 percent, 15 percent or 20 percent per income tax bracket is based on ordinary income, not capital gain?

That is the amount of capital gain that you won’t pay tax on. 

Is gain on the sale of home counted as taxable income? 0 percent, 15 percent or 20 percent per income tax bracket is based on ordinary income, not capital gain?

Thanks again.

 

Sorry, I didn't ask question clearly.. Might I ask how did you get that number? 

Is gain on the sale of home counted as taxable income? 0 percent, 15 percent or 20 percent per income tax bracket is based on ordinary income, not capital gain?

I did a test return using the amounts that you posted to arrive at the figures that I posted. 

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