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There is a special zero capital gains tax rate through 2010 for people with low enough taxable income to be in the 10 or 15% tax bracket. I’m not a tax pro but I would think that this would probably apply to real estate sales but I am not 100% sure. (Any definitive answers?)

If you don’t already fall in that range you may be able to structure your 2009 or 2010 income so that you have vey little taxable income in order to get most of the capital gains taxed at the zero percent tax rate.

If you qualify for the zero percent capital gains tax rate it doesn’t automatically mean that all of the capital gains would be at zero percent. It could be that after you crunch the numbers that $60K would be taxed at 0% and the rest taxed at a higher rate.

Greg
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