topic Capital Gains tax in Tax law changes

Capital Gains tax

Cjschade — Tue, 10 Mar 2026 05:59:57 GMT

Bought a building, 1/2 for my business and 1/2 commercial rental.

Paid 160,000 in 2003. Sold it this year for 250,000. No debt or mortgage. How much will I have to pay in capital Gains taxes? How will it affect my Pennsylvania tax return this year?

Re: Capital Gains tax

NateTheGrEAt — Wed, 28 Sep 2022 18:29:07 GMT

Hi @Cjschade and thanks for your question!

There are a lot of variables here, but I can give you some general information and point out the areas where more information is needed for you to get a complete and accurate answer.

* Your capital gain amount would be calculated as your sales price 250k, minus your basis (160k plus any capital improvements made over the years if any), minus any selling costs (unknown). However, the half of the building that was rented should have been depreciated and you need to reduce your basis by the amount of depreciation claimed or allowed (in other words, if you took depreciation, you will have unrecaptured Sec 1250 gain; if you didn't take depreciation, you still have to pay tax as if you took the maximum amount you could have taken. Note that it is not too late to fix this situation if you didn't take the depreciation. You can file Form 3115 with your tax return for the year the property is sold.)

*Your capital gains tax is the capital gain amount, multiplied by your capital gains tax rate. However, the rate depends on your filing status and the total amount of income. We don't know either of those. So we can't tell you how much capital gains tax you would pay.

*PA does tax capital gains at the same rate as all other income, so you will also have to pay PA income tax on the sale. (I'm assuming both you and the property are located in PA. If not, other state income tax could apply also.) See this article on PA capital gains tax.

I hope this is helpful!

Re: Capital Gains tax

NateTheGrEAt — Wed, 28 Sep 2022 18:38:47 GMT

Here are the current Federal capital gains tax brackets for 2022 returns:

2022 capital gains tax rates

For taxes due in April 2023.

Tax-filing status	0% tax rate	15% tax rate	20% tax rate
Single	$0 to $41,675.	$41,676 to $459,750.	$459,751 or more.
Married, filing jointly	$0 to $83,350.	$83,351 to $517,200.	$517,201 or more.
Married, filing separately	$0 to $41,675.	$41,676 to $258,600.	$258,601 or more.
Head of household	$0 to $55,800.	$55,801 to $488,500.	$488,501 or more.