Hi. My name is ***** ***** I will be happy to help you.
Your calculation is correct but you will need to increase your gain by the depreciation you have been taken and reduce your gain by the selling expenses.
+ depreciation (look at your depreciation schedule or Schedule E)
- selling expenses /2
= capital gains to be reported.
Part of your capital gains will represent the depreciation, and the depreciation will be taxed as ordinary income, not as capital gains.
The capital gains will be added to your other income and taxed as followed:
in 10 - 15% tax bracket - no capital gains tax
in 25 - 35% tax bracket - 15% capital gains tax
in 39.6% tax bracket - 20% capital gains tax.
California doesn't have special capital gains tax so it will be taxed as ordinary income. Here are CA tax brackets: https://www.ftb.ca.gov/forms/2015_California_Tax_Rates_and_Exemptions.shtml#ctrs
make sure you look under correct filing status.