Hi just trying to guestimate how much I will make after selling my condo inclosing capital gains tax as well as how the capital gain somehow puts me into a higher tax bracket when calculating my income tax.
This is last sale of my life—I will go into rental assisted living. I am married, filing jointly. My income is about $210,000 and I normally take about $39,000 in deductions off that income.
My condo was bought 25 years ago for $400,000. The sale price today will be $1,365,000 less 5% commission. I have no idea how much to deduct for appreciation and improvements over the years—would just like to guestimate what is normal =–so I’d say about $200,000.
I think I know how to get the Capital gain tax (in Florida)
Sale Price 1,365,000 5% realtor commission -60,250 Purchase price -400,000 Deductions for improvements And depreciation -200,000 (correct me if too low) Married filing jointly One time exemption -500,000 Capital gain ipon Which to pay 20% tax 204,750 Capital gain tax at 20% 40,950 (correct me if tax rate here is wrong.
So now I owe 40,950 in capital gains. I would normally compute my income tax by deducting my reductions 39,000 from my income of 210,000 and looking up the tax on that on the IRS tax chart. (210,—less 39,000- $171,000—so tax is 29,517.40 plus 28 percent of the amount over 151,900-total of $34,865.40.
What exactly will I change in my income tax calculation to take account of the capital gain?
Thanks much in advance.
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