You'll need to sign in or create an account to connect with an expert.
There are a couple things going on.
First the depreciation recapture is ordinary income, not subject to capital gain treatment.
2nd is while you were in 0% capital gains, the capital gains and depreciation recapture has pushed you up to higher tax bracket, causing the capital gains to become taxable.
Last issue is you need to get the basis corrected on the house to correctly compute the gain.
Did you live in the house as a personal residence for 2 of the past 5 years? This would change this tax impact greatly if you did.
There are a couple things going on.
First the depreciation recapture is ordinary income, not subject to capital gain treatment.
2nd is while you were in 0% capital gains, the capital gains and depreciation recapture has pushed you up to higher tax bracket, causing the capital gains to become taxable.
Last issue is you need to get the basis corrected on the house to correctly compute the gain.
Did you live in the house as a personal residence for 2 of the past 5 years? This would change this tax impact greatly if you did.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Brian G
New Member
theleeb
Level 2
Joan2k
New Member
eliotlee
Level 1
md455
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.