"...what should we be expecting to pay in capitol gains?"
Well, nobody here can provide any answer with precision since we don't know what your gain is or what tax bracket you'll be in when you prepare your income tax return.
Your gain will be long term, of course, but not all of the gain will be taxed at the statutory capital gains rates of:
- 0% if your taxable income puts you in the one of the two lowest tax brackets
- 15% if your taxable income puts you in the next 4 higher tax brackets
- 20% if your taxable income puts you in the highest tax bracket.
The accumulated depreciation you've taken (or should have taken) over the last 5 years - which reduces your basis when calculating gain on sale - will be taxed as "depreciation recapture"; this will be your ordinary income tax rate up to a maximum 25 percent rate.
Tom Young
