iperep
New Member

Pros and cons of selling rental property in California.

What are the cost impacts on selling a rental property in California

Carl
Level 15

Investors & landlords

Pro - if you sell at a loss, you will not have any gain to pay taxes on. (But you will pay taxes on recaptured depreciation, no matter what)
Con - If you sell at a gain, you will pay taxes on the gain and the recaptured depreciation.

Investors & landlords

California taxes both capital gains and depreciation recapture at regular income tax rates.