/biz/ - Business & Finance

>>518041
Google "long term capital gains tax", the tax savings depend on your total income.

Example: I'm single and make $75k a year. That means I pay 25% marginal tax rate on ordinary income and 15% on long term capital gains.

If I sell a house I've owned as an investment for more than one year and net $50k I'd pay 15% LTCG tax = $7,500. If I had lived there and owned it for at least two of the past five years I'd pay no capital gains tax.

If I held it for less than one full year I'd pay 25% STCG tax (same rate as ordinary income) = $12,500.