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I bought a rental property for 49000 and sold it for 29000…

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I bought a rental...

I bought a rental property for 49000 and sold it for 29000 many years later. During those years I depreciated it entirely. So do I it don't I have to pay capital gain on the entire 29000?

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I am now retired. I have another rental property purchased six months later for which I should have done an exchange but didn't. I am trying minimize my tax liability from the 29000 sale.

Submitted: 5 months ago.Category: Tax
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11/11/2017
Tax Professional: Tax.appeal.168, Tax Accountant replied 5 months ago
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Tax.appeal.168, Tax Accountant
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Tax Professional: Tax.appeal.168, Tax Accountant replied 5 months ago

When calculating your capital gain, you must first calculate your “basis” in the capital asset before subtracting it from the sales proceeds to determine the tax owed. Your basis is the purchase price adjusted for improvements, depreciation, and other adjustment items. Think of basis as an adjusted purchase price.

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Tax Professional: Tax.appeal.168, Tax Accountant replied 5 months ago

In addition, many people tend to forget about the depreciation recapture. SEE BELOW:

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Refer to the article at the following link for more detailed information regarding depreciation recapture.

https://www.thebalance.com/depreciation-recapture-3192979

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