Long Term Capital Gains on out of state vacation home

[deirdrelilawalsh]

We sold a condo in 2023 (out of state) for a large profit that we owned the past 10 years. We used the condo both personally for a couple weeks a year and rented it out the remainder of the time we didn't use it. My question is how can I reduce my capital gains tax on this property? We are retired in our 70s, and don't really have any income outside of social security. Being as this sale was a long term capital gain, and we are on a fixed income and fall into a smaller income tax bracket being retired, how will we be taxed? I read somewhere that it's based on your income bracket when you sell as long as it is a LONG TERM capital gain and not a SHORT TERM capital gain. Can you please clarify? 

Also- what sorts of things can I write off to offset the amount of capital gains tax I owe? Can I offset it with HOA payments and quarterly assessments we paid over the course of the ten years even if I wrote these off each year against my income taxes while owning it?  

Please advise. 

[MarilynG1]

Yes, long term Capital Gains Tax is based on your current income bracket.  It can be anywhere from 0% to 20%.  Here's more detailed info on How Capital Gains are Taxed.

Don't forget to consider any Sales Expenses you incurred for the sale, as well as any Improvements you made preparing for the sale, which can be added to your Cost Basis when calculating net proceeds.

Since this was a vacation home, you could report it as an Investment Sale.  Here's How to Enter Sale of Second Home, Inherited Home or Land.

However, if you have been claiming Rental Expenses and Depreciation over the years, indicate that it was taken out of service in the Rental section (date listed for sale could be date used), and make note of the Depreciation  amount displayed. 

Then enter the sale in the Sale of Business Property section.  Type 'sale of business property' in the Search area, then 'Jump to sale of business property'.

No, you cannot deduct HOA payments and quarterly assessments if you claimed them as Rental Expenses over the years. 

@deirdrelilawalsh