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janbigg
New Member

How much capitol gains would I pay

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?

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1 Best answer

Accepted Solutions
Hal_Al
Level 15

How much capitol gains would I pay

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


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4 Replies

How much capitol gains would I pay

You pay on the GAIN, including depreciation recapture.

How much capitol gains would I pay

Individuals are allowed a deduction from South Carolina taxable income equal to 44% of the net capital gain recognized in South Carolina.
Hal_Al
Level 15

How much capitol gains would I pay

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


How much capitol gains would I pay

Any mortgage payoff is not factored into the equation.
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