Vincent, I am confused by the basis calculation you've used. 104k+16K= $105600?
Bottom line is that I need to subtract the basis of the original property from the net sales price of the 2022 (replacement property) to get the total Gain; then subtract the accumulated depreciation (taxed at regular income rate) to arrive at the taxable capital gain which is taxed at the Cap Gain Rate. Example: Sold current house net $408K - original house basis $100K=$308K-depreciation $81k= Taxable Cap Gain $227k. $227k x 15%tax = $34.5k leaving Dep. Recapt. of $81k taxed at (say) 22%=$17.8k. Total tax thus 34.5+17.8=$52.3. Apologies for the extra work but just want to be sure I understand your otherwise great advice. Thank you very much
