How to determine Capital Gains Rates
To all the BP Tax Experts,
I am thinking of selling my properties and was doing research on capital gains rates. I ran across this article and was wondering about the income threshold. Is my capital gains rate based upon my adjusted gross income of my personal return (LLC flows thru into the personal return), or is it based upon the total wages earned (W2, 1099, other business income, etc.) for the year? Also, the income earned doesn't include the sale of the assets, correct? i.e. my W2 income plus the gain of the assets/buildings does not equal the "maximum taxable income" qualification of the rate chart. It is the total income of W2, 1099, other business, etc. which determines the maximum taxable income.
I understand the option of 1031 exchanges, but am exploring all options at this point and am wondering what my taxable income is based upon for capital gains rates.
Thanks to all in advance!