Tax Law (Questions About Taxes)/Capital gains taxes

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Question
Sir,
I am on SSD, earning $9,600 per annum. That is my sole income. If I were to be given some long term stocks to sell and incur a capital gain of $50,00 would i have any tax liability?
I am in the zero percent tax bracket and understand that capital gains in that bracket are not taxable.

Would the $50k still have to appear on a tax return or is my tax liability still limited to the original $9,600?

Thank you so very much for your time.

Answer
Alex,

Thanks for your question.

You would owe taxes on the gain to the extent your marginal tax bracket exceeded 15%.  For a single person, the 15% bracket starts at 36,900 of taxable income.  After the standard deduction and personal exemption, that would leave you with a taxable income of #13,050, which would be taxed at 15%

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

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I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

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The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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