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Deductions & credits
There are potentially two types of gain on the sale of a rental.
For example, if you bought the house for $100,000 and sold it for $200,000, you would have a $100,000 capital gain.
If you further took $25,000 of depreciation, the gain would now be $125,000 and the depreciation portion would be recaptured and taxed as ordinary income.
‎June 6, 2019
8:18 AM