You'll need to sign in or create an account to connect with an expert.
@kfite10 wrote:
I've owned it for 20 years with no mortgage.
Then you almost certainly have a large figure in terms of unrecaptured Section 1250 gain (i.e., depreciation recapture) which is taxed at 0-25% based on your tax bracket and cannot be offset with capital losses.
The tax on capital gains is not a separate tax. It's just part of your overall income tax. If the gain is long-term, as yours is, it's taxed at a lower rate than other income.
You didn't say when you sold the property. If you sold it in 2023 it's too late to do anything to reduce your tax. If you sold it in 2024, there's still not much you can do to reduce the tax. If you will have enough itemized deductions to exceed your standard deduction, contributing more money to charity will reduce your tax. If you are eligible to make a deductible IRA contribution, that will reduce your tax. If you have other investments with unrealized losses, selling other investments at a loss will offset the tax on the capital gain from the property. But as tagteam said, it will not offset the tax on the depreciation recapture.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Tom in Dunwoody
Returning Member
Johnjepp
New Member
migloth
New Member
melissaforpeace315
Level 4
dsw-05
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.