Capital Gains On Sale Of Rental Property
this is going back to a question i posted last year on figuring the capital gains tax on the sale of a rental property. me and my wife purchased the condo in 1992 and lived their until 1998 where we rented it out until our sale last year. we originally paid 79900 and sold for 170000. i remember reading a column in this forum stating that if our taxable income on a certain line of our tax return was below a certain amount the capital tax rate would be 5%. sorry i don't remember what line was stated or the amount. i do know however that our taxable income was below this amount. when we went to see a tax acct we were told that this is not true and going by our gross adjusted income of 59000 we have to pay 5% on 9000 and 15% on the rest of the gain. can anyone help in any way in figuring this out before we give the ok to paying 14500 to the fed and 4500 to the state.
thankyou in advance
dacid patrick :-?
When did you sell the property? The date you sold may affect your tax calculations.