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Old 11-06-2013, 03:07 PM
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question regarding capital gains tax on property sold in 2013

I sold land in 2013 for $506,000. The base land value was $154,000 and it was a long term capital gain.

My wife and I file jointly and our AGI together (through our jobs) will be around $250,000 for 2013.

Can anyone give me a rough estimate of what my tax burden will be for property sold?

I live in GA.

Kind regards,

JL



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Old 11-07-2013, 06:24 AM
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Quote:
Originally Posted by heavyfuel View Post
I sold land in 2013 for $506,000. The base land value was $154,000 and it was a long term capital gain.

My wife and I file jointly and our AGI together (through our jobs) will be around $250,000 for 2013.

Can anyone give me a rough estimate of what my tax burden will be for property sold?

I live in GA.

Kind regards,

JL
You need to provide here with your taxable income , NOT AGI As you said, as the amount of your AGI is $250K, then your taxable income when you file your return as MFJ must be more or less lower than $250K, then, for 2013, If I assume that your TI is between $142,700 and $217,450, then your personal tax bracket’d be 33% then you need to pay $52,800 as your LTCG tax to the IRS; 15%*($506,000-$154,000(your adjusted basis of the land). There is no unrecatured depre recap , I mean sec 1250 rule not applicable,since land is nOT depreciated as you can see.
Please visit the web site here for your LTCG calculation; Capital Gains Tax Rate Calculator
ALSO you need to check LTCG rate for your sttae retrurn with the Dept of Rev of GA.



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Old 11-10-2013, 08:34 PM
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thanks for the reply! our taxable work income will be around $210,000

GA capital gains tax is 6% i believe


Quote:
Originally Posted by Wnhough View Post
You need to provide here with your taxable income , NOT AGI As you said, as the amount of your AGI is $250K, then your taxable income when you file your return as MFJ must be more or less lower than $250K, then, for 2013, If I assume that your TI is between $142,700 and $217,450, then your personal tax bracket’d be 33% then you need to pay $52,800 as your LTCG tax to the IRS; 15%*($506,000-$154,000(your adjusted basis of the land). There is no unrecatured depre recap , I mean sec 1250 rule not applicable,since land is nOT depreciated as you can see.
Please visit the web site here for your LTCG calculation; Capital Gains Tax Rate Calculator
ALSO you need to check LTCG rate for your sttae retrurn with the Dept of Rev of GA.



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Old 11-10-2013, 08:36 PM
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thanks!!

also, what about the obamacare tax at 3.8%? how does that figure in?



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Old 11-11-2013, 12:00 AM
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Originally Posted by heavyfuel View Post

also, what about the obamacare tax at 3.8%? how does that figure in?
it depends;obamacare tax at 3.8% is a new rule for investment income taxes on capital gains and dividends earned by high-income individuals; The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.The tax affects only individuals with more than $200k in modified adjusted gross income , and married couples filing jointly with more than $250k of MAGI. The tax applies to a broad range of investment securities ranging from stocks and bonds to commodity securities and specialized derivatives.



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