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Investors & landlords
It is perfectly -possible that your recaptured depreciation was taxed at the capital gains tax rate, instead of the ordinary income tax rate. That will happen if you have more than one rental asset listed in the Sale of Assets/Depreciation section, and you did not show a gain on each individual asset when you sold the property.
When you sell at a gain, if you show a gain on the main rental property asset and a loss on any other listed assets, then the recaptured depreciation from those other assets is included in the capital gain and taxed accordingly.
‎June 11, 2023
6:38 PM