Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Last year after new tax laws, I sold a piece of property under the new capital gains rules. Because my adjusted gross income was in the 15% bracket, I was assuming the capital gains portion would be taxed on it's own at 10% and added to the tax I owed on my regular income. But, the capital gain was placed on the 1040form on line 13--capital gain or loss-- and added onto my salary thus putting my new adjusted gross income way above the 15% tax bracket. That does not seem likeanyone could ever take advantage of selling a capital gains asset and taking advantage of the new 10% rule for 15% bracket. Bottom line was that I paid much more tax than I was anticipating. Is this the way you understand that the tax is computed? Once it goes onto line 13, basically it becomes viewed in the regular income designation. Thank you for your input
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.