Quote:
Originally Posted by Cowboy89
Example:
Let's assume your marginal income tax rate is 25%.
Sell your rental property before June 25, 2024.
$300,000 gain * 50% * 25% = $37,500
vs.
Sell your property after June 25, 2024:
Tax Bill = $39,583.33
-$300,000 gain - $250,000 annual limit = ($50,000*66.667%*25%)+($250,000*50%*25%) = $39,583.33
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The bolded isn't possible with a $300K gain (assuming it's a single taxpayer claiming it). Even with zero other income, the marginal rate is going to be 40%+.