So I sold a rental property that I had held for 5 years for approximately $44k profit, which would place this in the category of long term gains in the 0% bracket, meaning I should be paying no tax on the sale. However, when I input the sale into Turbotax, it increases my taxes due by approximately $6800. What gives?
As instructed on these forums, I'm going to the asset list in the Sale of Property/Depreciation section, clicking Edit by the property that I sold, indicating that I sold it, and putting in the date and price. I'm currently tearing through the forms trying to find out where things are going wrong, but if anyone can point me in the right direction, I would appreciate it.
You'll need to sign in or create an account to connect with an expert.
Long Term Capital Gains are calculated not just by the amount of the gain, but also by the amount of Taxable Income on your return.
Here's more detailed info on How Capital Gains are Taxed.
Be sure you included the amount of your Sales Costs.
Original Cost - Depreciation Taken = Cost Basis
Total Proceeds - Cost Basis + Sales Costs = Gain
the depreciation recapture portion of the gain is not eligible for LTCG treatment. it can be taxed up to 25%. if your investment income is high enough there's an additional 3.8% net investment income tax
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
kritter-k
Level 1
AugustRush1993
New Member
kritter-k
Level 1
crdixonaz
New Member
Audio82
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.