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I understand you take a bigger hit on capital gains from secondary homes. Just curious how personal income comes into play.
My parents live with is and the rental was their primary home but has been rented for a few years. They have had no income (besides nominal rent) for the last two years. This year my dad has started working two jobs and will probably gross $24k this year. They really don't need the money more just bored.
So would it be wise to stop working now if they plan to sell the house within a year or two as I inderstand it if they have zero or very low income they will essentially get taxed none or very small vs earning $24k and getting taxed more (talking about capital gains tax)
noooooooooooooooooooooooooooooooooooooooooooooooo it was a 2nd home. period. that was mentioned 2x already above. it was never a rental.
HUH?
Quote:
Originally Posted by IShootNikon
I understand you take a bigger hit on capital gains from secondary homes. Just curious how personal income comes into play.
My parents live with is and the rental was their primary home but has been rented for a few years. They have had no income (besides nominal rent) for the last two years. This year my dad has started working two jobs and will probably gross $24k this year. They really don't need the money more just bored.
So would it be wise to stop working now if they plan to sell the house within a year or two as I inderstand it if they have zero or very low income they will essentially get taxed none or very small vs earning $24k and getting taxed more (talking about capital gains tax)
House is paid off and worth around $100k
BTW, has the OP's parents had any other income, like SS, investment income, dividends, pension?
noooooooooooooooooooooooooooooooooooooooooooooooo it was a 2nd home. period. that was mentioned 2x already above. it was never a rental.
I read it totally different
How did the parent collect rent from it?
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