topic If I sell my house how will I be taxed? Its value is $265,000 and the capital gain will about $43,000. It is a rental so I have not lived there in 4 years. in Investors & landlords

If I sell my house how will I be taxed? Its value is $265,000 and the capital gain will about $43,000. It is a rental so I have not lived there in 4 years.

tank38 — Tue, 16 Jul 2019 22:56:47 GMT

Re: If I sell my house how will I be taxed? Its value is $265,000 and the capital gain will about $43,000. It is a rental so I have not lived there in 4 years.

Anonymous — Wed, 17 Jul 2019 00:17:36 GMT

to the extent the gain is attributable to depreciation allowed or allowable,, it will be section 1250 gain subject generally to a tax rate of 25%. if the gain exceeds depreciation taken, it will be taxed at long term capital gain rates which may be 0% depending on your particular tax situation.

Re: If I sell my house how will I be taxed? Its value is $265,000 and the capital gain will about $43,000. It is a rental so I have not lived there in 4 years.

Hal_Al — Wed, 17 Jul 2019 01:00:43 GMT

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 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%.