No.
Go back and do the
Qualified Dividends and Capital Gains worksheet
for line 12b of form 1040.
It is a bit complicated. To understand it you must do the steps including looking up values in the Tax Tables.
It is 15% from $39,375 up to $434,550, then goes to 20%, and then for some can go to 28%

The worksheet is on page 33 of this form 1040 guide

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

You're still wrong. You must pay to have your taxes done or never filed capital gains. Line 1 on worksheet is from form 1040 line 11b which is you total income. Put any number you want on line 1 of the worksheet over $39,375 and see if it isn't taxed at 15% Lol


Sample If you make $35k in wages and $39k in cap gain your income would be $74k and you would pay 15% on the entire capitol gain. Now if you have 0 income and a $39k capitol gain and no other income the capitol gain would be taxed at 0 but It will be taxed as regular income because it'll be lower than the 15% cap gain tax.

No that is incorrect.

The first $39,375 is taxed at zero percent even if your total income is greater than $39,375.

I had a much greater than $39,375 capital gain and a much greater than $39,375 total income.
I am familiar with where the 15%, 20% and 28% threshold begin.

As I posted before do the
“Qualified Dividends and Capital Gains Worksheet” on page 33
by hand,
step by step.

If you are using a computer program, it might be double important for you to compare the by hand way.

TurboTax, for example has had to admit to making several mistakes over the years.

I paid my first taxes when the last no-nonsense President, Dwight Eisenhower, was in office.
I have seen many tax changes.

Getting back to the original poster.

If there are several married family members who would each share the total capital gain on the sale of the house, a married taxpayer could have a bit more than $79,000 of capital gain taxed at zero percent.

You sir are delusional to think you get $39 K tax free. Kinda explains your thinking on your 50 plus pages of covid nonsense

So now I am delusional and spouting nonsense.

If you cannot argue against true facts,
throw slurs against the person’s character.
That unfair but often used tactic is so old it has an ancient name in a now dead language:
Ad Hominem

The reason for my original post was to help Moparts members make a bit of extra money.

I am willing to admit mistakes,
and have admitted to several here on Moparts.

As I have grown older my core philosophy has shifted to admitting mistakes quickly and changing course to correct them.

I make an infinite number of financial mistakes every day,
by not having invested yesterday in every investment that went up by today.

That used to be called a “sin of omission” but today is called a “Type II error”.

There is more than Cap gains at play here and the issues may be magnified if certain things weren't done while the property was rented...

Carry on.

Talk to a seasoned pro that has experience in inherited property that is rented.

I suspect trouble on this whole thing.

There should probably have been K-1's issued for all the years rented as well. I do not know how they handled the shared ownership of rental property. I have seen some do it as a partnership and issue K-1's and some just have one individual report all the income and share it (Not best practice) and worse, I have seen some not report it at all.

But the capital tax gains is taxed separately from regular income. It is not added to regular income and then taxed as part of regular income.

https://www.nerdwallet.com/blog/taxes/capital-gains-tax-rates/

This has a quick calculator to figure your capital gain taxes. Take a best guess and enter the numbers on the worksheet about halfway down the page.

I agree with the posts above about rental issues.