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Family Law Software can calculate child support guideline amounts in 21 states.
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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.
For "actual taxes," the capital gain on the sale carries to the View/Edit Taxes report for the year of the sale, as capital gain income.
The taxation of capital gain income can be a bit complicated, but it is worked out on the View/Edit Taxes report. (You can see the details on report (31) Tax Calculation Report.)
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.
If you want to get a precise calculation of the impact of the sale of real estate on taxes, do the following:
1. Set up the Real Estate with no sale (with or without ongoing mortgage payments, depending on exactly what comparison you with to make).