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Ed567
March 10, 2021
Question

AGI is 40,000. We sold a rental home and have 100,00 in capital gains plus 50,000 in unrecaptured 1250 gains. Which of those taxes is applied first and at what percent?

  • March 10, 2021
  • 1 reply
  • 0 views
Will a portion of our capital gains be taxed at 0% considering our AGI is 40,000 or are the unrecaptured 1250 gains taxed at our ordinary income rates first before applying the long-term capital gains tax of 15%?

1 reply

ColeenD3
ColeenD3
March 10, 2021

Your 1250 gains are part of your AGI. It is carried over from Schedule 1 to Line 8 1040.

 

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