I recently sold a rental property (used as primary residence for 3 of last 5 years and rented out for 2 years). There is no capital gains tax since the capital gain was less than 500k, but I understand I owe tax on the Unrecaptured Section 1250 Gain (since I claimed depreciation on the property for the last 2 years). Do I need to pay that tax when I file my tax returns, or should I pay it this quarter in advance?
