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?
Other income is taken into account in determining thecapital gains rate. But the rate can not exceed 20% except for the Net Investment Income Tax
very rough example
if income was only $50K LT capital gain, federal tax would be 0
add$120K ordinary income to that and the tax is around $18K with the tax on the $50K being$7.5K
4) Is it correct that our tax rate affects the rate for depreciation recapture, or is it a flat 25%?
your marginal tax rate with 25% being the max
there is one other tax to consider and that's the Net Investment Income Tax.
filing jointly net investment income in excess of $250,00 is taxed at an additional 3.8% - see form 8960
