Very helpful. So for calculation of taxable gain (if it’s more than 500k), is this correct?
Capital gains = Sale price - purchase price - improvement - realtor fees - closing costs + depreciation recapture
Is the depreciation recapture required for calculating the capital gains or is that done separately at the state and federal level?
So the Capital Gains is what I need to check (assuming my formula above is correct), if it’s under 500k then it’s form IT-AFF2 or is there no form to be filled out? If it’s more than 500k when which form would it be?
