@Carl wrote:
.....If your overall AGI puts you in a tax bracket above 25%, then recaptured depreciation (which will be so small for you, I can't see why you would care) will be taxed anywhere from zero percent, to a maximum of 25%, not to exceed the "lower" of your tax bracket, or 25%.
It is not at all difficult to discern why @bayo "would care" since the difference here is between paying up to 25% on unrecaptured Section 1250 gain and absolutely nothing if the entire gain were excluded under Section 121 of the Code.
@Carl wrote:
.....since you owned the property for less than a year, your gain will be taxed at the higher, short term capital gain rate anyway.
@bayo clearly stated, "I bought my primary home in 2012...." in the original post in this thread so any gain would clearly be long-term, not be short-term.
