No - There are not changes to the way capital gains are calculated on the sale of a rental property under the Tax Cuts and Jobs Act of 2017. However, the income brackets related to all long-term capital gains has changed.
For
long-term capital gains - The capital gains rates did not change under the Tax
Cuts and Jobs Act. The long-term capital gains tax rates of 0%, 15%, and 20%
still apply. However, the way they are
applied has changed slightly. Under previous tax law, the 0% rate was applied
to the two lowest tax brackets, the 15% rate was applied to the next four, and
the 20% rate was applied to the top bracket.
Under
the Tax Cuts and Jobs Act the brackets are:
-
Single
Taxpayers - 0% (up to $38,600), 15% ($38,600-$425,800), 20% (Over
$425,800)
-
Married
Filing Jointly - 0% (Up to $77,200), 15% ($77,200-$479,000), 20%
(Over $479,000)
-
Head
of Household - 0% (Up to $51,700), 15% ($51,700-$452,400), 20%
(Over $452,400)
-
Married
Filing Separately - 0% (up to $38,6000), 15% ($38,600-$239,500), 20% (Over
$239,500)
