When you sell rental property , there usually are two types of income generated.
First, Depreciation Recapture which is "Paying Back" the depreciation that you realize on the sale
Next, Capital gain if you sell for more than what you purchased the property for.
Depending on the time it was a rental, the depreciation for that time, the original basis (cost) and the adjusted basis (cost less depreciation) the sale will result in these types of incomes.
Depreciation Recapture is reported as Ordinary Income
Sale proceeds over original cost is Capital Gains.
@tanlongpham
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
