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PDtax
PDtax, CPA firm owner
Category: Capital Gains and Losses
Satisfied Customers: 4676
Experience:  Tax professional and business consultant for 34 years
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I have no taxable income. Sold non-primary residence

Customer Question

I have no taxable income. Sold non-primary residence (rental) for $45,000.00 above purchase price in 2003.
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  PDtax replied 1 year ago.

Hi from Just Answer. I'mCustomer I'll assist.

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.

I hope that answers your question. If so, please rate my assistance using our five star or smiley face scale. Positive feedback is appreciated. I'mCustomer