Hi all,
we plan to sell a rental property this year. Several questions. Thanks in advance:
1) Owned for 12 years as a rental property, and took depreciation. Do we need to pay the long term capital gains and depreciation recapture as estimated taxes, or do we wait until we file our 2024 taxes next year?
2) Is the long term capital gain calculated as simply sale price minus purchase price and expenses? Or is it sale price minus purchase price, expenses, and depreciation recapture?
3) Am I correct that long term capital gains are separate from our AGI? They are taxed at their own rate? Or does it take into account the total income?
4) Is it correct that our tax rate affects the rate for depreciation recapture, or is it a flat 25%?
5) What expenses can be deducted before calculating long term capital gains? For example, we are putting in French drains immediately before selling. Can I deduct that? What about the AC system we installed last year? And the new roof a few years ago?
thanks!
