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I've figured out my probable tax and it is $22,500. You may consider that "small" but I don't. It's basically robbery without a gun.
You need to do some better calculations. If your capital gain on the sale of your primary residence is around $300,000, your tax will likely only be about $1,500! (Only a half of 1%!) You'll get a generous $250,000 exclusion since it's your primary residence, and as a single person you'll get another $40,000 reduction on your capital gain, since capital gains are taxed very favorably. Then you'll only need to pay 15% on the remaining amount. You may even be able to lower that further if you have had expenses that will increase your basis.
You have nothing to complain about. If you would have made that much by actually working for it, your tax bill would be much, much more. Quit yer complainin'.
If you're that opposed to paying taxes, just sell it for less.
EDIT: If your capital gain is $350,000, the effective overall tax rate on your gain will shoot up to about 2.5%. Count your blessings. In my calculations, I'm assuming that your other income won't put you into a higher capital gains tax bracket, since if you were making that much through a job you'd realize how lucky you were to have that income only subject to a capital gains tax rate, with all of its generous exclusions.
Last edited by jackmichigan; 10-21-2021 at 03:50 AM..
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by jackmichigan
Well, you could get married...but that's going to cost you a LOT more!
I am married, but despite the doubling of the exemption to $500k, we'll still be on the hook for a significant tax, since we bought in 1993 and expect to sell for $1.1 million. Yes, it will hurt to give away that tax money but buying a smaller place in a less expensive area we will still come out with a couple of hundred k left over.
Fortunately no state tax here (yet).
You need to do some better calculations. If your capital gain on the sale of your primary residence is around $300,000, your tax will likely only be about $1,500! (Only a half of 1%!) You'll get a generous $250,000 exclusion since it's your primary residence, and as a single person you'll get another $40,000 reduction on your capital gain, since capital gains are taxed very favorably. Then you'll only need to pay 15% on the remaining amount. You may even be able to lower that further if you have had expenses that will increase your basis.
You have nothing to complain about. If you would have made that much by actually working for it, your tax bill would be much, much more. Quit yer complainin'.
If you're that opposed to paying taxes, just sell it for less.
EDIT: If your capital gain is $350,000, the effective overall tax rate on your gain will shoot up to about 2.5%. Count your blessings. In my calculations, I'm assuming that your other income won't put you into a higher capital gains tax bracket, since if you were making that much through a job you'd realize how lucky you were to have that income only subject to a capital gains tax rate, with all of its generous exclusions.
….all other income you get goes in to the bucket first ….so if all other income is 40,400 you are out of the zero capital gains bracket and the 50k gain is taxed at 15% .
If all the income added together exceeds 445,851 then it goes to 20% plus a 3.80% surcharge.
….all other income you get goes in to the bucket first ….so if all other income is 40,400 you are out of the zero capital gains bracket and the 50k gain is taxed at 15% .
If all the income added together exceeds 445,851 then it goes to 20% plus a 3.80% surcharge.
That is for a single
Plus state taxes .
Now I'm really getting worried. When you say "all income added together", do you mean above the 250K exemption or including it? eg. If my house has a 400K gain + my regular income = more than 445,851 will I have to pay 20% + 3.80% surcharge. Or would it be only the gain ABOVE 250K + regular income?
….all other income you get goes in to the bucket first ….so if all other income is 40,400 you are out of the zero capital gains bracket and the 50k gain is taxed at 15% .
If all the income added together exceeds 445,851 then it goes to 20% plus a 3.80% surcharge.
That is for a single
Plus state taxes .
Quote:
Originally Posted by whoisjongalt
Now I'm really getting worried. When you say "all income added together", do you mean above the 250K exemption or including it? eg. If my house has a 400K gain + my regular income = more than 445,851 will I have to pay 20% + 3.80% surcharge. Or would it be only the gain ABOVE 250K + regular income?
1. Line should read :
If all the income (including any amounts over the 250K), added together exceeds 445,851 then the cap gain rate goes to 20% plus a 3.80% surcharge.
2. Correct. Only the gain ABOVE 250K + regular income
Why does the government deserve to take your personal windfall?
Why does the government take a portion of ANY income you may have?
Answer: A. Because they can, and B. Because the government needs income to pay for all these freebies that some people think are "rights", and C. Because some of it actually goes toward a good purpose.
Why does the government deserve to take your personal windfall?
Why do you deserve to live in this country? You had no say in where you were born.
My primary complaint about the U.S. tax system is that the burdens are not fairly shared. People and corporations that make millions or billions of dollars should at least be contributing something to the U.S. Treasury. There are plenty of other inequities, too, but this is not the correct forum for that discussion.
I am married, but despite the doubling of the exemption to $500k, we'll still be on the hook for a significant tax, since we bought in 1993 and expect to sell for $1.1 million. Yes, it will hurt to give away that tax money but buying a smaller place in a less expensive area we will still come out with a couple of hundred k left over.
Fortunately no state tax here (yet).
Yeah, we would be effed if we were to sell. Bought for $179k 25 years ago, house around the corner which comps to ours is going for $2M - it’s a California coastal thing, not complaining. Fortunately we are super settled where we are with no need or desire to be anyplace else. Somebody’s going to pay the tax man but hopefully it ain’t us directly.
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