Paying tax on sale of rental property

[Melwani4]

How do I calculate how much tax I would need to pay on the sale of an apartment  rental property ?

[ConyEA2021]

Hi @Melwani4 

You will first apply depreciation recapture which is computed as this:

Original basis minus depreciation equals "Adjusted basis"

Subtract your adjusted basis from the selling price to get the total profit. 

The profit is first allocated to depreciation recapture. 

Whatever is left is capital gain

here's a link with a good example: Sale of Rental 2022