The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Broadway2019 on February 25, 2018, 12:10:44 PM
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I bought a house in 2012 and lived in it for 2 years. After, I rented it for 2.5 years, then sold it in July 2017.
I bought it for $195,000, sold for $255k. Took depreciation of $13,886 total on my prior taxes. I satisfy the rule where i lived in it for 2 of 5 years so shouldn't pay taxes on the gains. However, I think I have to pay taxes on the depreciation.
Anyone have any idea how much this would be?
I have an accountant doing my taxes, however, am trying to plan how much will be leaving my emergency fund
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Yes, you need to pay. 25% is the typical depreciation recapture. Turbo Tax, H&R Block, or your accountant can easily figure it out.
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Yes, you need to pay. 25% is the typical depreciation recapture. Turbo Tax, H&R Block, or your accountant can easily figure it out.
+1 Hawkeye's comments except that that the depreciation recapture is taxed at your ordinary income rate up to a maximum of 25%.
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Thanks! I guess it was easy. I found some info on Google too.