Question: what goes into the profit calculation for the sale of a rental property? My gain is listed as a lot higher than the profit I made, so I want to see if this can be expected vs whether it means I made a mistake somewhere.
Details:
I had a property that was my primary residence for 5 years, then a rental property for 3+ years. Last year I sold it for a large profit, but I notice that it's being listed as income higher than the profit:
bought for: 555K
sold for: 920K (profit: 365K)
But in my Federal income section, I see 'Sale of Business Property': $519,522
Then in my state, it's listed as: Capital Gains Taxable at 5%: $522,881
Are there different factors that are included aside from the purchase price and sale price? Could this be normal, or did I make a mistake?
thanks in advance for your help!
