It would only apply to Residential Real estate if you had any cause to take depreciation on your home value, which would be the case in a year if you took a home office deduction.
Then to the extent of depreciation taken or allowed to be taken that income is treated as wage income (at your current tax rate, just like wages). The residual of the net gain that is capital in nature hits at 0/15/20 based on your income. If the net gain is smaller than the depreciation then all the gain becomes current tax rate.
