Are capital gains on a rental property added to my annual income in figuring which tax bracket I'm in?

[parrotlady]

I am currently on the lowest tax bracket but if the sale is added to my income it would definitely put me in a higher tax bracket
Thank you

[TomYoung · Accepted solution]

To answer your top-line question the answer is "Yes".  Of course your probably going to get hit with a certain amount of depreciation recapture, typically taxed at 25%, but capital gain over that will be taxed in the "usual fashion" of increasing rates - 0%, 15%, 20%, etc. - as the combination of other income and LTCG's move you up through the income tax brackets.

Tom Young