4231,000 Capital gain when other income is only 13,352/

Forum|Forum|3 years ago
March 6, 2023
4 replies
29 views

Have a 91 year old woman who has $231,000 gain on sale of rental property but only $13,352 other income. How do I keep the gain from being taxable since she's below the $40,000+ threshold?

ProSeries Professional

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abctax55

Level 15

Huh ???

What $ 40,000 threshold are you talking about?

Are you talking about the first tier of capital gains is taxed at zero? If so, that doesn't mean the 'rest' of the gain isn't taxable.

Or, if I'm wrong ... I have a LOT of amended returns to do .

HumanKind... Be Both

rbynaker

Level 13

Take a look at the Sch D Tax Worksheet to follow the math. I assume ProSeries follows the one at the end of the Sch D instructions. You'll see on line 22 "This amount is taxed at 0%." Keep following and you'll see the other rates as well.