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When you sell a rental the depreciation is recaptured as ordinary income and the rest of the profit is cap gains so you may indeed have a tax liability on the ordinary income portion of the sale along with any other ordinary income you may have. Save a PDF of the return and review the entire form 1040, the form 4797, Sch D and the cap gain worksheet.
You can view your entire return or just your 1040 form before you e-file:
When you sell a rental the depreciation is recaptured as ordinary income and the rest of the profit is cap gains so you may indeed have a tax liability on the ordinary income portion of the sale along with any other ordinary income you may have. Save a PDF of the return and review the entire form 1040, the form 4797, Sch D and the cap gain worksheet.
You can view your entire return or just your 1040 form before you e-file:
In the tax year you sell a rental property, all prior depreciation is recaptured and taxed as ordinary income. The recaptured depreciation is also added to your AGI.
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