Capital Gains Tax on Sale

[jackmichigan]

Originally Posted by T. Damon

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.

Whoever you leave it to will get a stepped-up basis, so no tax will be owed on the appreciation which occurred during your ownership.

[whoisjongalt]

Originally Posted by reed303

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

Thanks! That's what I was thinking but wasn't sure.

[NORTY FLATZ]

Originally Posted by jackmichigan

Whoever you leave it to will get a stepped-up basis, so no tax will be owed on the appreciation which occurred during your ownership.

Depends on "how" it's worded in your revocable living trust....it can make a difference.

Sorry for derailing.