Question
capital gains rental
Good afternoon,
In regards to capital gains, whatever you profit (based on sale price, improvements, depreciation, closing costs, etc), does that get added to your income for that year and then you pay capital gain taxes on that?
For example, let's say my parents profit $250,000 and they can have an adjusted income of up to 94,000 for 2023 married filing jointly. Let's say their AGI is $54,000. Would they then be taxed 15% on the balance of the profit of approx. $210K? This is my understanding, but I just want to double check. The property is in CA and we now live in NC.
Thank you
