Long term capital gains are taxed at more favorable rates than ordinary income.
Capital gains tax 2017 real estate.
Based upon irs section 121 exclusion if you sell the main home you live in the irs lets you exclude not be taxed on up to 250 000 of capital gains on real estate if you re single.
Your tax rate is 15 on long term capital gains if you re a single filer earning between 39 376 and 434 550 married filing jointly earning between 78 751 and 488 850 or head of household.
The current long term capital gains tax rates are 0 15 and 20 while the rates for ordinary income range from.
The irs treats home sales a bit differently than most other.
Read on to learn about capital gains tax for primary residences second homes investment properties.
Reporting capital gains you report all capital gains on the sale of real estate on schedule d of irs form 1040 the annual tax return.
You must first determine if you meet the holding period.