How much capitol gains would I pay

4 replies
52 views

I sold my second home/rental home for a profit after owning it for two years.

What would the tax rate be for South Carolina and Federal tax?

Also would I only pay on the amount after closing costs and all fees?

TurboTax Premier Online

Hal_AlAnswer

Level 15

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 (less expense of sale) and what you paid for it originally as a long term capital gain (LTCG). Enter the depreciation you've taken over the years (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

S

SweetieJean

Alumni - Champ

You pay on the GAIN, including depreciation recapture.

S

SweetieJean

Alumni - Champ

Individuals are allowed a deduction from South Carolina taxable income equal to 44% of the net capital gain recognized in South Carolina.

Hal_Al

Answer

Level 15

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 (less expense of sale) and what you paid for it originally as a long term capital gain (LTCG). Enter the depreciation you've taken over the years (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