How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13112
Experience:  15years with H & R Block. Divisional leader, Instructor
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

I am planning to sell a rental property, Beach, VA, Still in

Customer Question

I am planning to sell a rental property
JA: Where is the property located?
Customer: Virginia Beach , VA
JA: Has any paperwork been filed?
Customer: Still in the planning stages -
JA: Anything else you want the lawyer to know before I connect you?
Customer: Point me toward issues involving Capital Gains, and Depreciation/recapture
Submitted: 30 days ago.
Category: Tax
Expert:  Robin D. replied 30 days ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 30 days ago.

Capital gains first.

You look at the cost less depreciation plus improvements to start. The difference in that and the sale price less costs to sell will be your gain or loss. If loss no tax to pay if gain then you pay a rate based on your total income. This could be 0%, 15% or 20% if you held the property for more than 1 year and 1 day.

Depreciation recapture is the USA Internal Revenue Service (IRS) procedure for collecting income tax on a gain realized by a taxpayer when the taxpayer disposes of an asset that had previously provided an offset to ordinary income for the taxpayer through depreciation.

If you dispose of depreciable or amortizable property at a gain, you may have to treat all or part of the gain (even if otherwise nontaxable) as ordinary income. If you sell at a loss then no recapture.

Expert:  Robin D. replied 30 days ago.

If you wish to read the information

the above link is the best place.

Expert:  Robin D. replied 30 days ago.

Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

Related Tax Questions