Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
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You will have two levels of taxable gain, the depreciation recapture for the years you rented the property out, and a gain on the appreciation on the property.
let's say you bought for $150,000, of which $10,000 was allocated to land. Let's say you claimed depreciation over the years of $65,000. You are looking at depreciation recapture (ordinary income) of $65,000, and capital gain income of an additional $45,000, less the expenses of sale, like commissions, closing costs and the like.
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