I’m considering selling my rental property. Is there a simulator where I can plug in numbers and see the tax consequences?

[Carl]

You can use Taxcaster at https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Be aware it's currently set up to work with the 2020 tax laws. But it should give you a good idea.

[tagteam]

TaxCaster does not handle the maximum 25% tax rate calculation for unrecaptured Section 1250 gain (accumulated depreciation deductions) so you should only use it to get a very rough estimation of the tax consequences of selling rental real estate.

[Carl]

Basically, your cost basis in the property is what you paid for it originally, plus the cost of any property improvements you paid for while you owned it. From that total subtract all depreciation taken on the property. Then any amount over that value that you sell it for is taxable gain. Take note that recaptured depreciation is taxed at a maximum of 25%. So if the gain on the sale puts you into the 32% tax bracket or higher, that recaptured depreciation will only be taxed at a maximum of 25%.