@Anonymous - not sure I follow - he sold the land also; I do not read it that he didn't.
purchase price is $405,000
Sales price - closing costs: $425,000- 6040 = $418,860
Gain = 418,860 - 405,000 or $13,860
I wonder if the depreciation is $54,973.
so the gain is $13860 and the depreciation recapture of $54,973 or $68,833.
The tax on the recapture is 25% or $13,743 and the capital gains tax on the $13860* 15% is $2061.
I wonder if the 'recapture' why he is getting "killed on taxes".
