Sell Mutual fund and taxes

[rjwassink67]

I have forgot how this works...

If I make $50k a year income and I sell a mutual fund for $100k (gains of $25k), how much is my Taxable income for the year?

I can not for the life of me remember what this is or can not find it on google...

Can someone set me straight?

Thank you!

 

[pb4uski]

$75k of income, but you reduce that by deductions and exemptions to calculate taxable income. If you're married, most likely no incremental tax on the sale... if you're single then probably some incremental tax on the sale... worst case $3,750 (15% of the gain).

Suggest that you model your situation in TurboTax or TaxCaster or this calculator to see.

 

[rjwassink67]

Thank you, I knew it was easy, just couldn't remember.

 

[nun]

I have forgot how this works...

If I make $50k a year income and I sell a mutual fund for $100k (gains of $25k), how much is my Taxable income for the year?

I can not for the life of me remember what this is or can not find it on google...

Can someone set me straight?

Thank you!

You have $50k in earned income and $25k in capital gains. You will then apply deductions and if your income is below the 15% tax threshold you'll pay 0% tax on the capital gains.

 

[PERSonalTime]

You have $50k in earned income and $25k in capital gains. You will then apply deductions and if your income is below the 15% tax threshold you'll pay 0% tax on the capital gains.

Correct [emoji106]

 

[DrRoy]

If the mutual fund gain is over a period of less than a year, it is short term and taxed like earned income. If the period of the gain is longer than a year, it is long term and the tax % is lower