I am selling my rental unit, hoping for $235K, bought it for $212K, and have $130K left on my mortgage. Assuming we pay $25K in transfer taxes/realtor fees/staging, etc. we'd walk with $80K.
What will my taxes look like?
How will depreciation impact our "take home"? We've depreciated $48K since 2018. Is this "added" to the "profit" we'd earned from the sale ($23K)?
What constitutes a capital investment? We remodeled the kitchen and bathroom 10 years ago when we lived there (been renting for 6 years now) but I don't think ever included that in our tax documentation. Is it too late to declare those as capital investments?
We also have been operating at a loss, our declared unallowed passive losses total $48,294 over the past 5 years. Where do these loses get applied in my taxes? To reduce my taxable income?
Thank you!!!!
