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Author: ww4321 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123149  
Subject: Re: taxes on sale of vacation home question Date: 7/10/2009 4:32 AM
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thanks that clarifies all---- and i was thinking about the state tax in New York.


adjusted gross income 65000

long term capital gain on sale $100,000

what would be the actual additional tax for selling vacation home?

There's no way to know exactly without looking at all of the details of your tax return.

Given the info provided, it will be roughly $15k.

If there are a lot of itemized deductions AND you're married filing joint, some of that $100k gain might get taxed at 0%. So that would make the total tax a bit lower.

If you're confusing AGI with taxable income (a very common error), the tax might be a bit more than $15k due to phaseouts on deductions and other items.

If all you're doing is trying to figure out what cash you'll have left after the sale, $15k is a decent approximation. If you're trying to figure up what to pay in estimated taxes, you'll need to get into a little more detail.

And don't forget to consider your state tax (if any) in your planning.

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