Capital Gains and Losses

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I am selling a rental property that I bought in 1981 with a…

I am selling a...

I am selling a rental property that I bought in 1981 with a partner the total cost was $90,000. We each took 50% of depreciation over the years and then I bought out the partner in 2009 for $30,000. I then took depreciation on the new purchase of $30,000. When I sell the property, what is my cost basis? My half of the $90,000 plus the $30,000? And how do I calculate the depreciation recapture?

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I am selling the property (in escrow now) for $325,000 with selling expenses of $27,000 and improvements of $26,000.I am trying to figure out the taxes I will owe.

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3/10/2018
TaxRobin
TaxRobin, Tax Preparer
Category: Capital Gains and Losses
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Customer reply replied 4 months ago
Thank you

Your basis is the Half you paid plus the $30k plus improvements less the depreciation you claimed ( on your half and then on the additional $30k after you bought the other half).

$45k + 30 + $26k - depreciation you claimed

The partner's depreciation is not relevant.

TaxRobin
TaxRobin, Tax Preparer
Category: Capital Gains and Losses
Satisfied Customers: 18,178
Experience: 15+ years in Tax preparartion as well as Instructor for tax law, theory, and application
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Customer reply replied 4 months ago
Thank you so much!!

You are most welcome and thank you

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