Capital Gains Tax Owed?

[Taxing Matters]

Thank you everyone for your information and assistance, much appreciated.

So, we would owe taxes, both NYS and Federal, on the sale, from the 1958 purchase date to the sale price in 2019?

That depends on an additional fact that we've not talked about. Your wife's grandparents bought the place in 1958. How did your wife's mother get it from them? Did they give it to her while they were still living? Or did they pass it to her via their will when they died? Or something else?

 

[LdiJ]

I'll state again, the value of the GAIN is included in the income used to determine the capital gains rate, so if your wife's share of the gain PLUS any other income is more than $78,750, you're moved up into at least the 15% rate.

But again, there will be a credit for the foreign tax paid that will help offset any capital gains tax assessed.

 

[LdiJ]

That depends on an additional fact that we've not talked about. Your wife's grandparents bought the place in 1958. How did your wife's mother get it from them? Did they give it to her while they were still living? Or did they pass it to her via their will when they died? Or something else?

It wasn't the wife's grandparents who first owned the house. It was the wife's mother. That was verified somewhere in the thread.

 

[FlyingRon]

But again, there will be a credit for the foreign tax paid that will help offset any capital gains tax assessed.

Correct, and I mentioned that in the first response in the thread. I only made my last statement because the poster again seems to have glossed over the fact that he is living on only a pension would mean he's in the 0% bracket.

 

[LdiJ]

Correct, and I mentioned that in the first response in the thread. I only made my last statement because the poster again seems to have glossed over the fact that he is living on only a pension would mean he's in the 0% bracket.

I know. I just felt it was worth mentioning again.

 

[rico7684]

Thank you FlyingRon for that clarification.