Capital Gains Tax Confusion?

www.irs.gov and really do read and try to get unconfused about your capital gain situation at this time in life with collectible at the maximum 28% rate at this time in your life OK.

Use the search box for Topic 409 - Capital Gains and Losses

www.irs.gov/taxtopics/tc409.html

There are three exceptions where capital gains may be taxed at rates greater than 15%:

The taxable part of a gain from selling Section 1202 qualified small business stock is taxed at a maximum 28% rate.

Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate.

Additional information on capital gains and losses is available in Publication 550, Investment Income and Expenses, and Publication 544, Sales and Other Dispositions of Assets.

Hope that you find the above enclosed information useful. 07/01/2013

Your tax owed is not $0.

The threshold is including the profit from the sale.

The threshold for owing tax is not $400,000. At $400,000, the tax rate goes up, but there is some tax, even below that threshold. The threshold for owing some tax is approximately $10,000.

The entire gain is taxable regardless of your employment status. Since this is a collectible, it's taxed as ordinary income with a maximum tax rate of 28%.

You are confusing the $400k trigger for the 20% LT CG rate on NON collectibles. That does not come in to play in this situation at all.

What you do with the gain is irrelevant.

No, not tax free. The cap gains amount is included when determining if you owe tax, not just your other income.

Not sure where you're getting that 400K threshhold - not true.

What you do with the money has no tax effect.

sale of an asset will trigger the cap gains and yes, there are upper limits at which the rate is higher

and no, purchasing a residence with the proceeds has no effect in any way

What type of business in not capital gaind

Your $999,200 profit is all taxable, no matter what you do with the moey.