With an income of under 40,000, would I have to pay capital gains tax on property that has appreci
caninereggie
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With an income of under $40,000, would I have to pay capital gains tax on a recently sold lot that had greatly appreciated over the past 35 years?
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Answers
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Hello,
It depends. Does that $40,000 include the income gained from the sale of the lot? If so, then you might not have to pay any taxes. "Some or all net capital gain may be taxed at 0% if your taxable income is less than or equal to $41,675 for single and married filing separately, $83,350 for married filing jointly or qualifying surviving spouse or $55,800 for head of household"
The capital gain tax rate depends on your total taxable income. Your gains from the sale would be included in that.
