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What is our capital gains liability of we sell in 2019? We bought a house in May of 2017 and lived there for 13 months. We then rented the property for 1 year.

 
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6 Replies

What is our capital gains liability of we sell in 2019? We bought a house in May of 2017 and lived there for 13 months. We then rented the property for 1 year.

you didn't include any dollar amounts for purchase or sale or anything like that for anyone to venture a guess on capital gains liability.
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

What is our capital gains liability of we sell in 2019? We bought a house in May of 2017 and lived there for 13 months. We then rented the property for 1 year.

We bought the home for 705k and we can sell it for 805k.

What is our capital gains liability of we sell in 2019? We bought a house in May of 2017 and lived there for 13 months. We then rented the property for 1 year.

So you will have capital gains on the profit, looks like 100K minus selling expenses, and then recapture of depreciation for the period it was a rental.   You didn't live in it long enough to qualify for the IRC121 exclusion (living there for 2 out of the last 5 years).    

That additional income will be added to your other income and may bump your other income up into a higher tax bracket.
♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

What is our capital gains liability of we sell in 2019? We bought a house in May of 2017 and lived there for 13 months. We then rented the property for 1 year.

Why did you move?
Anonymous
Not applicable

What is our capital gains liability of we sell in 2019? We bought a house in May of 2017 and lived there for 13 months. We then rented the property for 1 year.

you can use TT tax caster to estimate your tax liability.  


so much depends on your other income.  and deductions


federal tax rate on gain can range from 0% to 20% ($100,000 less selling expenses)

depreciation recapture up to 25%

don't forget the state if you live in one with an income tax

Hal_Al
Level 15

What is our capital gains liability of we sell in 2019? We bought a house in May of 2017 and lived there for 13 months. We then rented the property for 1 year.

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, or should have taken, (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%.

For a detailed write up on this complicated topic see 
https://ttlc.intuit.com/questions/2593356-sale-of-rental-property-in-2014. You may want to use professional tax help when the time comes, although TurboTax can handle it


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