Capital Gain Tax Rates

[mcb39]

Am I correct that under the terms of the American taxpayer Relief Act of 2012; the Capital Gains Rates for taxpayers with taxable income under $400,000, will remain the same as for 2012.

I have a client who is considering selling a rental property and am trying to do a workup for him. Working it out on the 2012 program, they have a taxable MFJ income of $69,733 and would not owe any CG tax. This is calculated on the Qualified Dividends and Capital Gain Tax Worksheet. They will have a little more income in 2013, but more itemized deductions and will be adding an exemption in October. Am I thinking in the right direction?

[mcb39]

I did the numbers on the 2012 program and found the answer. Thanks to any of you who even considered offering two cents worth. Client is happy with Possible results and since he has a willing buyer may just get out from under this rental; though it is not the one he would like to be selling.

[jklcpa]

I would have answered but I was without power until late this afternoon, and then I had to put the generator and all the cords away. Yes, the zero percent cap gain rate for those in the lowest bracket was extended, so I think you have the correct answer.

[mcb39]

I would have answered but I was without power until late this afternoon, and then I had to put the generator and all the cords away. Yes, the zero percent cap gain rate for those in the lowest bracket was extended, so I think you have the correct answer.

Thanks, Judy..........