turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

capital gains rental

Good afternoon,

 

In regards to capital gains, whatever you profit (based on sale price, improvements, depreciation, closing costs, etc), does that get added to your income for that year and then you pay capital gain taxes on that?

 

For example, let's say my parents profit $250,000 and they can have an adjusted income of up to 94,000 for 2023 married filing jointly. Let's say their AGI is $54,000. Would they then be taxed 15% on the balance of the profit of approx. $210K? This is my understanding, but I just want to double check. The property is in CA and we now live in NC.

 

Thank you

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

capital gains rental

the depreciation recapture (section 1250) may be taxed at a higher rate. look at the section 1250 worksheet. 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies