topic Filing Single. Sold rental property. Capital gains $40,000. Can I spread gains over a few years to claim less income for 2019? in Investors & landlords

Filing Single. Sold rental property. Capital gains $40,000. Can I spread gains over a few years to claim less income for 2019?

mdmaclise — Fri, 08 Nov 2019 20:52:36 GMT

Re: Filing Single. Sold rental property. Capital gains $40,000. Can I spread gains over a few years to claim less income for 2019?

Anonymous_ — Fri, 08 Nov 2019 20:56:16 GMT

"Can I spread gains over a few years to claim less income for 2019?"

No, not unless you are receiving payments spanning a few years (i.e., an installment sale). Otherwise, you have to recognize the gain in the year the property was sold.

Re: Filing Single. Sold rental property. Capital gains $40,000. Can I spread gains over a few years to claim less income for 2019?

mdmaclise — Fri, 08 Nov 2019 21:00:52 GMT

Thank you.

Re: Filing Single. Sold rental property. Capital gains $40,000. Can I spread gains over a few years to claim less income for 2019?

Critter — Sat, 09 Nov 2019 17:52:19 GMT

And the depreciation taken or allowed will be recaptured first as ordinary income, the rest would be considered capital gains which will make a difference on the return .... you may want/need to do some what if scenarios to see where you sit so you save enough for taxes.