Thanks! As a matter of principle then, if our AGi is low enough post-FIRE then we won't need concern ourselves with LT cap gains rate when we sell since it'll be zero, it would seem
LT cap gains are only 0 until you fill in the tax bracket, then everything beyond that will be the usual 15%
Also, people usually use depreciation on rental properties to help with their tax liability. When you sell, unless you're doing a 1031-exchange or something else has happened, you will need to account (and pay) for the portion you previously depreciated. I'll let someone go more in detail, so far I haven't sold any of my rentals but, when I do, I will need to figure this out in detail.
This is something I dread. The tax nightmare for rental properties grows with every improvement as well. Tracking and depreciating gutters, roof, paint, appliances, etc. Then to top it off when you sell you have a tax nightmare, unless you 1031. Between transaction costs and taxes, it really sucks.
I have one rental that will soon be at the point where I will essentially make the exact same profit in a REIT for no work. At that point, I am considering selling it and just being done with it. Will see though...