Author Topic: Help with Rental Sale - Taxes Owed  (Read 886 times)

Broadway2019

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Help with Rental Sale - Taxes Owed
« on: February 25, 2018, 12:10:44 PM »
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

HawkeyeNFO

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Re: Help with Rental Sale - Taxes Owed
« Reply #1 on: February 25, 2018, 12:53:49 PM »
Yes, you need to pay.  25% is the typical depreciation recapture.  Turbo Tax, H&R Block, or your accountant can easily figure it out.

tralfamadorian

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Re: Help with Rental Sale - Taxes Owed
« Reply #2 on: February 25, 2018, 04:12:24 PM »
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%.

Broadway2019

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Re: Help with Rental Sale - Taxes Owed
« Reply #3 on: February 25, 2018, 04:18:58 PM »
Thanks! I guess it was easy. I found some info on Google too.


 

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