Hello again grandhope,
You would need the depreciation numbers in order to determine your taxable gain
The formula to figure your taxable gain is:
Selling price of $600,000
Less Your basis (original cost plus cost of improvements) = $285,000
PLUS the depreciation you claimed for the last 10 years.
is depreciated over a period of 39 years. If your basis was $285,000, then your depreciation each year should have been roughly $7,300. So for 10 years you would have claimed $73,000 in depreciation. I will use that figure for the purposes of calculating what your gain will likely be.
Selling price of $600,000 less basis of $285,000 = $315,000. Add back in your depreciation of $73,000 and you have a gain of $388,000.
On the gain of $388,000 -- The $73,000 which is attributed to the recapture of depreciation is taxed at a 25% ($18,250) and the remaining gain is taxed as a long term capital
gain at a rate
of 15% ($315,000 @15%) = $47,250.
Your total tax
on the gain from the sale will be approximately $65,500.
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Thank you grandhope