DO I have to pay Capital Gain Tax on the sale of property If I have low income?
ZoeD
Member Posts: 1 Newcomer
I have a home that I've lived in for many years. My income is just below the income level to pay capital Gains. Will I still have pay the Tax?
Best Answer
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Thank you for joining our community, ZoeD.
Since you have lived in the home for many years, you may qualify for an exclusion of the capital gain. The IRS stipulates that you qualify for a Section 121 exclusion if you have lived in the home 2 out of the last 5 years and you haven't sold similar property in the past 2 years. If you meet both of these tests, you can exclude the gain on the home up to $250,000 for single taxpayers.
As for the Income question, you qualify as paying 0% tax on any long-term capital gain (above the 250k above) for income less than $47,035.
