capital gains question...................this may be a double post

[Rickey]

I have a LT capital gain this year of $47,000

My taxable income is $24,700

Filing jointly

base on what i read capital gains tax should be Zero  

Is that cooect

[HelenC12]

Yes, according to the IRS:  Some or all net capital gain may be taxed at 0% if your taxable income is less than or equal to $40,400 for single or $80,800 for married filing jointly or qualifying widow(er).

There are a few other exceptions where capital gains may be taxed at rates greater than 20%:

1. The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate.
2. Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate.
3. The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate.

Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates.

[Rickey]

Okay thank you.

some more stuff.

1.  this capital gain is from an estate does change anything on how it is taxed?

2. now the other part.  I have from past years a long term  capital loss carry over of 42000.

It appears turbo tax takes this carry over against the capital  gains for this year.  

I would believe the carry over should not be used and instead the tax (in this case no tax) would be computed as you explained above.

I have spoken with several turbo experts  to no avail.

Thanks,

rick

[GeorgeM777]

The fact that your capital gain is coming from an estate may change your tax liability.  To follow-up on the comments from @HelenC12, generally, where a property is sold by the executor or personal representative following the deceased death, the estate will be liable for any capital gains tax.

When you inherit property, whether real estate, securities or almost anything else, the IRS applies what is known as a stepped-up basis to that asset. This means that for tax purposes the base price of the asset is reset to its value on the day that you inherited it. If you inherit property and then immediately sell it, you would owe no taxes on those assets (assuming you had no gain). That's why it's important to know the value of the asset as of the date of death of the decedent if you later decide to sell the asset.  

Regarding the carryover losses.  Those will get applied to your capital gains.  You cannot choose when to use them as they are applied in the year that can offset capital gains.  

@Rickey