selling rental property

[Nora Jane Rogers]

If I sell a rental house.  Payoff my own mortgage on house I live in. What will the capital gains be???

[OmM1]

Hello Nora Jane Rogers

Thank you for your question.

The capital gains for a rental property is broadly equal to

   Net Selling price (Selling prices, less expenses related to sales, it never includes any mortgage pay off)

   Less - Basis (Purchase price)

   Plus - Depreciation claimed or that you should have claimed.

If you did not claim depreciation in the past, you will be able to claim the depreciation by either amending prior tax returns or filing form 3115 (change in basis of accounting).

Hope this helps and answers your question,