first, there is section 1250 (depreciation) recapture which can get taxed at a higher rate. then any portion of the gain that is left is taxed at the applicable capital gain rate. you need to review both the section 1250 recapture worksheet and the capital gain and qualified dividend worksheet.
was land included in the worksheet for the cost of the rental?
first total sales price is allocated between building and land
then the same allocation % is used to allocate selling expenses
sales price allocated to depreciable real estate less related sales expenses less cost plus depreciation allowed or allowable is your capital gain on the depreciable real property. the depreciation can be taxed as high as 25% any remaining capital gain can be taxed at up to 20% depending on your situation
sales price allocated to land less related selling expenses is your capital gain on the land. this too can be taxed up to 20% maybe more
then there may be the net investment income tax form 8960 an added 3.8%
if the property was held less than a year all capital gain income is short-term capital gain subject to the same tax rate as other ordinary income
w can't see exactly what you did but likely you did something wrong.
