We had a rental property, which was our primary home for 2 out of the last 5 years that was recently sold. I understand that qualifies us for the primary home sale capital gains exemption of $500k (joint returns). However, since were renting it for 2.8 years there's some depreciation that has been taken on the property.
Since it's time for making quarter estimated payments, I have a few questions:
1. Do I need to pay the estimated taxes quarterly or by the year end for any taxes related to this property sale?
2. How do I calculate the estimated tax due for the depreciation recapture, is simply 25% of the total accumulated depreciation taken? Depreciation has been taken for 2021, 2022 and 2023 but 2024 taxes aren't filed yet, should I take into account the expected partial year depreciation for 2024 while calculating the depreciation recapture tax?
3. Is the depreciation recapture tax due only at the federal level or even at state (GA) level?
4. Since we qualify for the 500k capital gains exemption (and we are under that limit), are there any other taxes that are due for this sale at the federal or state (GA) level?
