If I sell my rental property for $120,000, how much capital gains would I pay?

[strauseacres]

We purchased for $91,000 and have been using turbo tax for the depreciation schedules.

[PatriciaV · Accepted solution]

It depends on the amount of depreciation you have taken.

In general, the gain or loss on the sale of a rental property is sales price minus original cost plus depreciation taken (ex: $120,000 - $91,000 + $10,000 = $39,000 capital gain).

When you enter this in TurboTax, the program automatically calculates the gain or loss for you. See this post for more help: How do I report the Sale of Rental Property?