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Question: Is the tax shown on the Sale of Real Estate Report exactly correct?
The tax shown on the Sale of Real Estate Report is an estimate.
The software takes the current marginal tax bracket and applies that to the total amount of the gain.
This will not be correct if the gain straddles two tax brackets.
The View/Edit Taxes report, showing the actual tax, will be correct.
The capital gain on the sale carries to the View/Edit Taxes report for the year of the sale, as capital gain income.
This income then goes into the hopper with all other income for the year. So the View/Edit Taxes, and Spreadsheet for Net Income after Expenses and Taxes will be correct.
Click here if you want to get a precise calculation ofthe impact of the sale of real estate on taxes