Capital Gain Tax Question

What is the name of your state? California

I have the following questions:

For capital gains above the $500,000.00 (primary residence), what is the tax percentage? Is it tie to my personal ordinary income bracket percentage?

Is this capital gain tax pay at time of sales completion, or is this pay on April 15th, when we filed tax return?

Thanks,

Need some more info, but will assume the following as a starting point:

1. Filing status is Married Filing Joint (MFJ)
2. Lived and owned the home for at least 2 of the 5 years prior to the sale.
3. Gain of sale is greater than $500,000.

The gain (minus $500,000 exclusion) is reported on Schedule D, which is then combined with all your other taxable income (wages, interest, dividends, etc.). The gain will be taxed at 10% and/or 20% depending upon your total income.

The taxes are due by April 15.

Andy Brown said:

Need some more info, but will assume the following as a starting point:

1. Filing status is Married Filing Joint (MFJ)
2. Lived and owned the home for at least 2 of the 5 years prior to the sale.
3. Gain of sale is greater than $500,000.

The gain (minus $500,000 exclusion) is reported on Schedule D, which is then combined with all your other taxable income (wages, interest, dividends, etc.). The gain will be taxed at 10% and/or 20% depending upon your total income.

The taxes are due by April 15.

Click to expand...

Andy,

If my income bracket is in the 30+% range, will my capital gain tax be at 20% or will it go up to 30+% also.

Thanks,

The taxable house profits are taxed at a max rate of 20% (assuming no depreciation to recapture). You pay the taxes on 4/15. I am not familiar enough with the CA tax code to give you the numbers for the state tax return.

I think that sometimes in CA, state tax is withheld at closing. You may want to check with your realtor or the appropriate CA agency.