I will have capital gains of $120,000 and depreciation recapture of $32,000 on a rental unit. Salary income - $75,000. What will the tax rate be sale of the property?

REG3837 · ‎May 31, 2019

Opus 17 · ‎May 31, 2019

Filing status?

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

REG3837 · ‎May 31, 2019

Married no children

Opus 17 · ‎May 31, 2019

From a base salary of $75,000, the recapture is taxed at 25%, and the remaining long term cap gains is taxed at 15%.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

Hal_Al · ‎May 31, 2019

Try this tool https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1. Enter your regular income first to see the regular tax. Then add the sale to see the effect.
Enter the difference between the sale price and what you paid for it originally as a long term capital gain (LTCG). Enter the depreciation you've taken over the years (depreciation "recapture") as other income. Depending on how much total income you have and you marital filing status LTCG are partially taxed at 0%, 15%, 20% and/or 23.8%. Depreciation recapture is taxed at your marginal rate, but not more than 25%.

I will have capital gains of $120,000 and depreciation recapture of $32,000 on a rental unit. Salary income - $75,000. What will the tax rate be sale of the property?