You will have capital gains, and you pay tax on them. 17,852 + 59K = 76,852. 76,852 - 70,900 = 5,952.You have $5,952 in gains.If my math is right.
You may need to include passive suspended losses accumulated over the years in your calculations... these could shelter your gain and even create a lost. Check the form 8582 from last year's tax return to see if these exist...
Quote from: SeattleCPA on July 19, 2017, 03:24:39 PMYou may need to include passive suspended losses accumulated over the years in your calculations... these could shelter your gain and even create a lost. Check the form 8582 from last year's tax return to see if these exist...Thanks. There is nothing there. However, is it true that my capital gains tax rate is 0 because I am in the 15% tax bracket? AGI last year was $63k, MFJ. Does that mean I actually wouldn't owe any taxes?
You'll want to check with a tax guy but I have unfortunate news.The amount you "made" on the rental seems like it is subject to depreciation recapture, which doesn't follow the rules of capital gains taxes.The more I read about it the more it seems it is taxed as income in the year you sell? (seems strange)Seems like it is capped at 25% so even if you were in a higher tax bracket it wouldn't be taxed more than thathttps://www.irs.gov/publications/p544/ch03.html#en_US_2016_publink100072556