question about recap tax when selling homes

来源: meowi 2015-03-31 08:37:02 [] [旧帖] [给我悄悄话] 本文已被阅读: 次 (222 bytes)

When selling a home, If recap tax is considered income tax, then there may not be tax advantages.  Because the recap would be 300K and you will be taxed at a much higher rate.  Is my understanding correct?

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depreciation recapture is taxed at 25%, not regular income rate -njrookie- 给 njrookie 发送悄悄话 njrookie 的博客首页 (0 bytes) () 03/31/2015 postreply 08:49:46

oh,Someone said income rate couple days ago.Thanks -meowi- 给 meowi 发送悄悄话 (0 bytes) () 03/31/2015 postreply 09:09:04

your best friend is google -njrookie- 给 njrookie 发送悄悄话 njrookie 的博客首页 (0 bytes) () 03/31/2015 postreply 09:22:27

Google it and found that for 100k gain you -meowi- 给 meowi 发送悄悄话 (3658 bytes) () 03/31/2015 postreply 10:16:53

have you tried to google 1031 exchange? -海泠- 给 海泠 发送悄悄话 海泠 的博客首页 (0 bytes) () 03/31/2015 postreply 10:23:26

yes, but I don't want to buy another one. -meowi- 给 meowi 发送悄悄话 (0 bytes) () 03/31/2015 postreply 10:55:10

cap gain and depreciation recapture are mutually exclusive -njrookie- 给 njrookie 发送悄悄话 njrookie 的博客首页 (0 bytes) () 03/31/2015 postreply 10:28:59

Yes. You take the 25% for the recap total (not the 20%) -jjj7- 给 jjj7 发送悄悄话 jjj7 的博客首页 (0 bytes) () 03/31/2015 postreply 10:34:21

That is what I don't understand, it seems taxed twice from this -meowi- 给 meowi 发送悄悄话 (0 bytes) () 03/31/2015 postreply 10:42:31

from this case, the calculation -meowi- 给 meowi 发送悄悄话 (319 bytes) () 03/31/2015 postreply 10:53:34

remember for the recapped depreciation, ... -njrookie- 给 njrookie 发送悄悄话 njrookie 的博客首页 (78 bytes) () 03/31/2015 postreply 11:08:31

thank you njrookie, please one more question below -meowi- 给 meowi 发送悄悄话 (514 bytes) () 03/31/2015 postreply 11:42:55

I find another case, it was done another way -meowi- 给 meowi 发送悄悄话 (640 bytes) () 03/31/2015 postreply 11:52:19

I think your second computation correct -njrookie- 给 njrookie 发送悄悄话 njrookie 的博客首页 (311 bytes) () 03/31/2015 postreply 11:53:25

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