Originally Posted by ItsAllGreek
Thank you in advance! I'm trying to get a ballpark estimate of how much CG tax he may be in for, if any for next year.
-80+yr old widowed retiree on pension and SS
-Just sold home of over 40+yrs and bought into retirement community
-Purchased house for $35k (yes, that's right! but it was 40+ yrs ago)
-Sold house for $500k
-Immediately bought into Sr. community for ~$320k.
I'm doing my homework (not his actual taxes) and it looks like he won't owe any because the net gain from his sale is under the $500 exemption.
Is this right?
He cannot deduct the $250K for his deceased spouse unless she died in the year that the house was sold, i.e. 2013 if the house was sold this year.So his LTCG that is taxable is $215K;$500K-$35K-$250K=$215K; as the LTCG of $215K, I gues, increases his tax bracket more than 15%, his LTCG’d be taxed at 15% NOT 0%.