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Mark Taylor
Mark Taylor, Certified Public Accountant
Category: Capital Gains and Losses
Satisfied Customers: 2308
Experience:  Certified Public Accountant
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I am selling a rental unit. Initial cost 52ooo. It was

Customer Question

I am selling a rental unit. Initial cost 52ooo. It was depreciated to 0. Current sale price 82000 - 8000 real estate and closing cost. What are the capital gains that I owe?
JA: I love the idea of making big money with investments, but there are so many things that could go wrong. The accountant will be able to help you. Please tell me more, so we can help you best.
Customer: What information do you require?
JA: Is there anything else the accountant should be aware of?
Customer: Not that I am aware of.
Submitted: 11 months ago.
Category: Capital Gains and Losses
Expert:  Mark Taylor replied 11 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. Please give me a moment to prepare your response.

Expert:  Mark Taylor replied 11 months ago.

The capital gain is going to be taxed in two ways. There is depreciation recapture on the amount of depreciation that was previously claimed. This amounts to $52,000 and would be taxed at 25%. The remaining gain would be taxed as a long term capital gain and would be taxed at a rate of 0 to 20%. In most cases the rate would be 15%.

Customer: replied 11 months ago.
Thank you. That's what I had also.
Expert:  Mark Taylor replied 11 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.