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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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do I have to pay capital gains tax on a rental property that

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do I have to pay capital gains tax on a rental property that was use as my home 2 years ago? married filling jointly. I paid 215k for it selling it for 372k with a current morgage of 217k (refi) and home loan of 95k. As a rental property I have used deductions for it, it was my primary residence 2 years ago and a rental for less then 2 years

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

You can exclude the gain, but you will have to recapture any depreciation taken

MyVirtualCPA :

So, to the extent that your gain can be attributed to depreciation taken, you will recognize a gain

MyVirtualCPA :

But, for the most part it is excluded

Customer:

so what ever decpreciation i took on my taxes (4k for last year) for 2 years, which was offset by my rental gains is what need to be recaputered as gain and taxed?

MyVirtualCPA :

Yes that is correct

Customer:

is that at the 15%, my agi for last year was 125,849.00 , married, filling jointly

MyVirtualCPA :

No, recapture is at 25%

MyVirtualCPA :

Is there anything else you need assistance with?

MyVirtualCPA :

If not, please rate my response "excellent" so that I may receive credit for assisting you today

Customer:

no way to aviod this?

MyVirtualCPA :

No, there is not

Customer:

excellent, you, not the situation

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