Investors & landlords

the capital gains tax rate will depend on the gain when added to other income.

depreciation recapture can be taxed as high as 25% it's only the gain in excess of the depreciation recapture that gets the favorable capital gains rate. In addition, the smaller of your modified adjusted gross income in excess of $200,000 or your net investment income would be subject to the 3.8% net investment income tax.