- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Investors & landlords
Yes, yes and yes.
However, you MIGHT actually owe more tax than that. Or possibly even less.
The capital gain could be subject to the 3.8% Net Investment Tax. If your income is really high, the long-term capital gains could be taxed at 20%. That 'extra' income could affect other things on your tax returns, such as reducing (or eliminating) some credits or deductions.
The tax on the depreciation is at your regular rate, UP TO 25%. So if your regular tax bracket is less than 25%, you may have less tax on the depreciation.
If you want a more accurate estimate, you could create another 'mock' TurboTax account, and enter all of your estimated 2024 information (including the sale) to see the results. If you are using the CD/downloaded version of TurboTax, you could "Save As" to create a second 'mock' tax file, then enter the rental sales date as December 31st, 2023 (just be sure to not accidently e-file the 'mock' test return).