Ask Bob: Home Sales, Capital Gains and Rental Property Taxes
Robert Powell, CFP®
Question: If I am in the 12% tax bracket ($45,000 taxable income) and I sell my home for $2 million in 2018 and it has a basis, including sales costs, of $1 million, do I owe capital gains tax at 20% or something else?
Answer: There are a number of missing pieces here, according to Gary Ruchin, a certified financial planner with Ruchin & Associates. We don't know, for instance, if you have itemized deductions, are married or single, and if there are any other income items or deduction items.