I understand that LTCG taxes levels are calculated off of your income after you have paid your ordinary taxes at the 10%, 15%,25%, etc., and after Personal and Ordinary deductions are taken off.======>> Not after you have paid your ordinary taxes but before the taxes paid; long-term capital gain tax rate is 0% for the 10%–15% brackets; 15% for the 25%–35% brackets; and 20% for the 39.6% bracket. you need to report the transaction, first on Form 8949 and then transferring the info to Sch D, using some basic information, including when you bought the asset and when you sold it. Then, unless you have either 28% Rate Gain or Unrecaptured Section 1250 Gain, you neeed to complete the Qualified Dividends and Capital Gain Tax Worksheet to determine your tax reported on Form 1040, line 44.
The question is, do I subtract home mortgage and taxes, in addition to the Personal and Ordinary deductions, before applying the LTCG?=====>>To deduct/ subtract home mortgage and taxes, you MUST itemize deductions on SCh A of 1040 , UNLESS you itemize deductions n SCh A of 1040, you can not deduct/ subtract home mortgage and taxes on your return. Personal exemptions on line 42 are deducted before you pay tax. |