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  #11 (permalink)  
Old 02-11-2015, 04:47 PM
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Originally Posted by Ronno6 View Post
So, in the end,tax bracket, cap gains and recap dep rates are determined by MAGI BEFORE deductions and exemption amounts have been subtracted?
I guess you are confused; capital gain tax rate is determined by your tax bracket,meaning say your marginal tax rate, tax bracket, I mean is 10 % or 15%,then, your LTCG rate is 0%. Your recap depreciation rate is determined by your tax bracket also; for example aslongas your tax bracket is lower than 25% then your recap depre ‘d be taxed at lower than 25%(if is is 15% then you need to pay tax on depre recap at15%) if is higher than 15% then it’d be taxed at 25%(even if your marginal tax rate is higher than 25%).However to determine taxable portion of your soc benefit, then you need to apply your magi(provisional income), 50% of soc sec benefits PLUS other income,i.e., tax exempt income or etc.



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  #12 (permalink)  
Old 02-11-2015, 05:06 PM
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You are correct: I am confused.
Max income for 15% (MFJ)tax bracket is $73,800.00 I think.
So, does that pertain to line 38 on form 1040, or line 43?
That ought to clear things up a bit.
If line 43 is $73,800.00 or less, is my LTCG taxed at 0% ?
Sorry to be such a bother, but this is very important.
Thanks.



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Old 02-11-2015, 05:15 PM
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Aslongas you have taxable long term capital gainfrom stocks, bonds, mutual funds and similar investments or etc , then youneed to report iton form 8949/Sch D of 1040(Sch D now functions as a summary of all capital gains transactions. Individual investment sales are to be detailed on the new Form 8949.), then, you need to complete the Qualified Dividends and Capital Gain Tax Worksheet to determine your tax liability reported on Form 1040, line 44



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Old 02-11-2015, 05:21 PM
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And the LTCG (not including recap dep?)from sale of Sec 1250 property goes where?



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Old 02-12-2015, 02:11 AM
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Originally Posted by Ronno6 View Post
And the LTCG (not including recap dep?)from sale of Sec 1250 property goes where?
it is sec 1231 gain is treated as LTCG and is reported on Sch D of 1040.If you have a net section 1231 gain, it is ordinary income up to the amount of your nonrecaptured deprercation from previous years. The rest, if any, is long-term capital gain , sec 1231 gain..Section 1231 gains result from the sale of depreciable assets that you have owned for more than one year. so you need to list your Section 1231 gains and losses on IRS Form 4797;then you need to enter the amount from Line 9 of Form 4797 and on Line 11 of Sch D/form 8949



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