How to Calculate Taxable Gain from Selling a Rental [Tax Smart Daily 020]

Thinking of selling your rental property? Here's a quick tutorial on how to compute the tax consequences that you will face when selling your rental real estate.
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Let's connect:

[Ella_kitty]

"most people the first time that they do something like this they go my gains fifty thousand dollars..." flash back to my accounting class when the professor raised the same question 😂

I love how you demonstrated this with an example. Super easy to follow thru. I've been watching this series to refresh my knowledge of taxation and it's a really fun way to learn/review

[chrisvandiver]

Thanks for the video!

If you have unallowed passive losses carried over from prior years, could they be used to offset the depreciation recapture or capital gains?

[kavithasundaram]

Hi, Thanks for the video. Can I reinvest the capital gain from the rental property to my primary residence loan that recently purchased?

[paulewart]

I have some expenses related to maintenance that are partially depreciated, a roof, furnace ect. Is the depreciation from those items also included in determining step one net basis? Also, what happens to the remaining balance of those items that have not been depreciated? Where do I claim the balance on the roof for example.

[mcbeezee]

I completely suck at numbers, that is why I have a tax guy who is well-versed in the real estate tax arena.

[CeciliaMarieAngela]

Do you have any videos showing how to take the carryover schedule E rental losses against the capital gains of the sale of the rental property? My software continued to show an unallowed loss.

[EddieFreedom]

Fantastic video! Question: if the seller has losses carried over from the previous year or current year from being a LP in a syndication, will the losses off-set the $14, 115, assuming there is at least $14, 115 of K1 losses? Thanks!

[gustavouceda]

Great info. I had 2 questions, First, why did you deduct from your 100k rental dep of 16k twice, from the adj. Basis and later from the gain of 58.5. Second, i sold a rental with over 25 years depreciation, that virtually offset my basis. Do I have any advantages to reduce tx on 100k by been old, over 70, and with incomes less than 60k? Thanks

[Maryam-uevw]

Many Thanks. I followed your calculation with mine. The last piece where you talked about tax on recapture and tax on capital gain was super helpful. I had. missed that. The tax rate ( unrecaptured section 1250) may be zero for income less that $41, 675. Is that correct?

[MrTbill]

What is cost basis if property was originally inherited? Last yearthey sold the inherited property but the proceeds were split among 4 decendents. Only 2 of them have been claiming depreciation on the property.

[imtiaziqbal]

Thank you
You have explained this very well.
Is there any way to know the accumulated depreciation as of current date based on the tax filing?

[mikemay]

Hello Brandon, my question is regarding capital gains tax from selling a rental and I am retired over 65yr and on SSecurity. My annual income is less than the $70k and I have been told by friends that I am not responsible for paying capital gain taxes if I am in that situation. Do you know if there is a way I should file to take advantage of that? And are you aware of that benefit?

[mertokutan]

thanks for the video. why is your sale cost only 5%? what is included in it? I was expecting it to add up to around ~10% ( agent commissions, closing costs etc.)

[zotac]

QQ: is depreciation deducted from a full price or with full minus land? In this case should it not be 90k - 16k?

[MRLINGERAYE]

When we're doing the sale of the property which form are we using

[magdaguzman]

I lived in my rental property for 17 years. I rented it 2 years ago, and i know i have one more year grace to sell it without paying taxes. My question is, if I sell it after that period, I will need to add to the cost basis only the depreciation for the years I rented it, right? In this case, it would just be a 3+ year depreciation. Am I right?

[randypower]

I'm trying to figure it out on my own and I'm NOT an accountant. I owned a condo rental for 5 years and depreciated the appliances each year. I'm selling now. Do I still use your method in the video or something different? Are the appliance depreciated over 27 years to get a yearly average? Stumped!

[jrotor]

Thanks so much for the video, quick Q, 14K tax+7.5K selling cost is about 21.5K. Percent that by 50K then tax is about 43 % ? Shouldn't the depreciation of the building(16K) be subtracted from the sales price ?

[capegoat]

Hello Brandon... when speaking of selling Rental Property, is the handling of things the same when you're speaking of Rental Property used in a Trade or Business (i.e. client is in the business of renting properties and thus uses a Sched C, etc) and a Rental Property held by a taxpayer who uses a schedule E to report his her earnings (i., e. NOT in the Trade or Business)

[tamotsunishida]

How is the depreciation and expenses affecting to the property sale tax when I had a refinance ?