topic Capital Gains in Investors & landlords

Capital Gains

Jimsyled01 — Mon, 09 Mar 2026 08:11:25 GMT

My ss and retirement is less than $40,000. I sold my rental for a $160,000 in capital gains. Turbo Tax calculated my tax at $23,000, Shouldn't it be 0% on the capital gains because of my income or is the capital gains considered taxable income when looking at the IRS charts?

Re: Capital Gains

Bsch4477 — Sun, 13 Mar 2022 03:00:01 GMT

Yes, the capital gains is considered income and contributes to your AGI. It also makes more of your social security taxable.

Re: Capital Gains

Jimsyled01 — Sun, 13 Mar 2022 03:03:48 GMT

Ouch - Thanks for the answer. I could go into denial.

Re: Capital Gains

Mike9241 — Sun, 13 Mar 2022 03:06:08 GMT

it won't be zero because you took depreciation on the rental and that part of the gain is taxble

Re: Capital Gains

medicigregnick — Wed, 20 Apr 2022 01:52:55 GMT

ask a CPA. I heard capital gains does not affect your income. First 513,000 gain is taxed at 15%, so 23000 sounds correct.

Re: Capital Gains

leeloo — Thu, 21 Apr 2022 10:06:10 GMT

85% of your social security is taxable. Your recapture of depreciation is income and affects the social security.

Re: Capital Gains

Hal_Al — Thu, 21 Apr 2022 12:31:21 GMT

There are four things going on with your tax return.

1. The 0% capital gains (CG) rate only applies to the portion of you capital gains, included in taxable income below the 22% tax bracket (~$40K). At best that would only be ~$28,000 taxed at 0%, Since you have other income, it's going to be much less than that,

2. The CG income increases your AGI making more of your Social security taxable.

3. The increase in total taxable income, making more of the SS taxable, also decreases the amount of CG taxed at 0%.

4. The depreciation recapture is taxed as ordinary income, not at long term CG rates.