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jentax101979
Returning Member

House purchased in 2000 for $250k & sold $600k in 2018. 100% rental & took depreciation yearly. Report $600k-$200k(cost)+depreciation recap-improvements=taxable gain?

 
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Hal_Al
Level 15

House purchased in 2000 for $250k & sold $600k in 2018. 100% rental & took depreciation yearly. Report $600k-$200k(cost)+depreciation recap-improvements=taxable gain?

No; not exactly.

Your report $600 - $250 cost - improvements = capital gain. You enter the depreciation taken (recapture) separately (you will be asked for it in the interview). The depreciation recapture is a section 1250 gain and is taxed differently.

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2 Replies
Hal_Al
Level 15

House purchased in 2000 for $250k & sold $600k in 2018. 100% rental & took depreciation yearly. Report $600k-$200k(cost)+depreciation recap-improvements=taxable gain?

No; not exactly.

Your report $600 - $250 cost - improvements = capital gain. You enter the depreciation taken (recapture) separately (you will be asked for it in the interview). The depreciation recapture is a section 1250 gain and is taxed differently.

JulieR
New Member

House purchased in 2000 for $250k & sold $600k in 2018. 100% rental & took depreciation yearly. Report $600k-$200k(cost)+depreciation recap-improvements=taxable gain?

Yes. The following link provides a detailed explanation about Calculating Your Profit When Selling Your Rental Property

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