Brackets Are Decided by Taxable Income
Wall Street Journal Online (08/06/00) Vol. 2, No. 5 p.1; Herman, Tom

Tom Herman, in his column in the Wall Street Journal, writes that one should not look at total income or adjusted gross income to determine federal income-tax brackets, but rather, at taxable income, which will be found on line 39 on Form 1040. Taxable income is what is left after subtracting personal exemptions, itemized deductions, or standard deductions from adjusted gross income. Herman also writes that, thanks to new rules, most people do not have to pay any capital-gains taxes when selling their primary residence. He refers to the words of Thomas Ochsenschlager, a certified public accountant, who says that nothing has to be reported if you qualify in full for home-sale exclusion and if the gain does not equal or surpass the maximum amount.

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