☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted May 31, 2019 6:58:02 PM

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

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

0 1 743
1 Best answer
Level 13
May 31, 2019 6:58:04 PM

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

1 Replies
Level 13
May 31, 2019 6:58:04 PM

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