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house net income: $2,144,000 (primary residence, sold Aug2020)
basis: $888,xxx (bought in 1998)
= net profit of $1,256,xxx
less 500k IRS exclusion = $756,xxx
long term cap gain rate 20%

so, Fed tax owed = $151,xxx

Correct?

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  • No improvements?
    – mkennedy
    Sep 11, 2020 at 16:42
  • they were negligible
    – Doug Null
    Sep 11, 2020 at 17:32
  • IF your other taxable income, after deductions, is over about $450k (exact limit depends on filing status) then (all) the capital-gain amount is taxed at 20%. If not, the part of the capital-gain amount that 'fits' in certain lower brackets is taxed at 15%, and if any 'fits' in the ordinary-income 10% or 12% brackets (other income below about $40k single, $50k HOH, $80k MFJ, probably rare for people owning an expensive house) that part is taxed at ZERO. You might want to download the 2019 forms and do a dry run; the 2020 numbers will be slightly different but not much. Sep 13, 2020 at 4:10

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