For the excess taxable amount the rate is 25.0%.

The penalty would be 10 percent of the taxable amount.

One per cent of this basis is the taxable amount every month.

So their new taxable amount of $8,550 is $1,550 more than the amount on which they would have paid taxes in 1993.

The amounts taxable at each level will depend on the filing status.

One such plan would increase the taxable amount of Social Security benefits from 50 to 85 percent.

If, however, the taxpayer could document $30,000 in expenses for building a new family room, the taxable amount would be sliced to $20,000.

So if a car cost $35,000, the taxable amount was $5,000 and the tax would have been $500.

With the one-time $125,000 exclusion, that taxable amount immediately drops to $83,000.

Any amount over the taxable amount should be included in gross income.