Hello - I plan to sell the house and have the following questions:
1) I will definitely be above MAGI of $250k (MFJ). Will an additional 3.8% be applied to BOTH LT gains (15%) and depreciation recapture (24% - my tax bracket), i.e., depreciation recapture will be taxed at 27.8%? Confused.
2) If I make house improvements in the year I sell - do I add those house improvement costs to the cost basis to reduce taxability?
