Have a Tax Question? Ask a Tax Expert
Dear ybqo7e51 -
To determine your gain you must also reduce your cost by the allowed or allowable depreciation. Thus you must reduce your basis by the amount of the depreciation you took OR should have taken.
To the extent that your gain represents prior depreciation taken, the capital gains tax rate is 25% (federal) any gain in excess of that amount is taxed at 15%. The state rate does not change.