Zero Percent Tax on Capital Gains?
Yes, Assuming you've held the property longer than a year (i.e., a long-term gain), the federal capital gains tax rate is 0% for taxpayers on gains that fall within the 10% and 15% tax rackets.
The upper end of the 15% bracket for 2013 is $36,250 for single filers and $72,500 for married joint filers.
For instance, if you're a joint filer with $60,000 of taxable income from other sources, you can have up to $12,500 of long-term capital gains taxed at the 0% rate.
For higher income taxpayers, the rates are higher and 2014 included a raise, as well. We are here to discuss your specific situation.
Tip: Take advantage of this tax break at year-end if you can squeeze in under the threshold.