Your rough figures are correct except on two counts.
There is no 15% tax bracket.
Then the depreciation would be taxed anywhere from 0% to a "maximum" of 25%. So if the gain on the sale puts your overall AGI in the 15% tax bracket, that's the highest rate depreciation will be recaptured at.
I also assume you understand how tax brackets work, and realize that your entire taxable income is not taxed at at set percentage rate.
Since you refer to "we" I assume you'll be filing a joint return for 2020. Therefore your income will be taxed as follows for a married couple filing joint.
| 10% |
|
Up to $19,750 |
| 12% |
|
$19,751 to $80,250 |
| 22% |
|
$80,251 to $171,050 |
| 24% |
|
$171,051 to $326,600 |
| 32% |
|
$326,601 to $414,700 |
| 35% |
|
$414,701 to $622,050 |
| 37% |
|
Over $622,050 |
So you'll pay $1,975 on your first $19,750 of taxable income
You'll pay $7,260 on the next $60,499 of taxable income
You can use the chart to get a rough figure of your total tax based on your projected taxable income. Remember, because of the changes to the standard deduction, your first $24,600 of income is not taxed.
