Contact UsHow about this. I am in the very bottom tax bracket and I was told that this will give me a $32,000 deduction on the capital gains tax. (in addition to all other deductions already allowed) Correct? In addition, if I sell on two payments from the purchaser 2012 and 2013, then can I take $32,000 each year? Dick
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Tax Professional Answers
Kathryn Morgan
I think what you mean has to do with the capital gains tax rate you pay (0%, 10%, or 15%) based on your tax bracket after all your deductions and exemptions. If you are in the 10% or 15% bracket, including the capital gains amount, when you get to line 43 of your return then the capital gains rate is 0%. This depends on the filing status you use plus your number of people on the return. But this may all change in 2013 depending onb what Congress does after the election. So you can't count on that for next year.
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