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Updated almost 3 years ago,
Taxable Income? Capital Gains Tax Question
Hi, I'm looking at the Capital Gains Tax rate chart and can't find a clear answer on what is counted as "taxable income" which determines where you fall in the 0%-15%-20% brackets. Assuming I only have a job and a rental property and no other sources of income, is it:
1) taxable income from wages + long term gain on the sale
2) only taxable income from wages?
3) only long term gain from sale?
My husband and I are trying to decide if we should sell this year (when our job income is high) or next year (when our job income will be much lower, maybe even lower than 80k which is close to the 0% bracket.) I know there is still state tax and depreciation recapture tax, but if we can avoid the NIIT tax and Capital Gains Tax, that would be...well awesome.
Thank you in advance!