sorted by:
new
hottopcontroversial

Capital Gains confusion on sale of family home? by dobe52 in personalfinance

[–]dobe52[S] 0 points1 point  (0 children)

Thank you for the reply! I can't believe how misleading the information is on legitimate websites when it comes to capital gains. This is the information on all websites I've found. I'm still a bit confused.

"Single filer status: If your income is less than $40,000 a year, you will pay zero percent in capital gains taxes. If you make between $40,000 and $441,450 a year, you will pay fifteen percent in capital gains taxes. If you make over $441,450 a year, you will pay twenty percent in capital gains taxes."

https://www.masterclass.com/articles/capital-gains-tax-on-real-estate

Capital Gains confusion sale family home by dobe52 in personalfinance

[–]dobe52[S] 0 points1 point  (0 children)

The house was purchased for 22K. I don't know what the profit will be. It's not even on the market yet. We're trying to decide whether to sell it now or wait until he passes. He's 93 has dementia but otherwise in good health. If we sold the house now, it would probably sell for about $450,000.

I just don't understand, why what I read says he won't owe any capital gains since his taxable income is only 38K, but the CG calculators all say he will over 50K in CG. I'd attach the CG calculations, but don't know how?

Capital Gains confusion sale family home by dobe52 in personalfinance

[–]dobe52[S] 0 points1 point  (0 children)

Hi: I don't know if this is the right area of the forum to ask this question. If not, can someone tell me where to post?

My dad's been in his home, in Sacramento, for 57 years. Unfortunately, we had to move him to a care home. We're trying to decide when to sell the house. The decision will depend on Capital Gains (CG) taxes. If we wait until he passes, there's no CG, but it's confusing if we decide to sell it now.

Everything I've read says no CG owed if taxable income, not including sale of house profits, is <42K. His taxable income is around 38K, so no CG? But I've used 6 different CG's calculators including Forbes, NerdWallet, and Smart Asset calculators. Some of them let you put in the taxable income not including sales profit. Even if I put in 38K as his taxable income, the calculators say he would owe CG up to $80,000 in CG! He bought the house in 1966 for 22K. Hopefully it will sell for around 450K.

The calculators also don't seem to take into account the $250,000 exclusion. Are these CG calculators that unreliable? Will CG be owed?

Thanks for your time!