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?
question about recap tax when selling homes
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• depreciation recapture is taxed at 25%, not regular income rate -njrookie- ♂ (0 bytes) () 03/31/2015 postreply 08:49:46
• oh,Someone said income rate couple days ago.Thanks -meowi- ♀ (0 bytes) () 03/31/2015 postreply 09:09:04
• your best friend is google -njrookie- ♂ (0 bytes) () 03/31/2015 postreply 09:22:27
• Google it and found that for 100k gain you -meowi- ♀ (3658 bytes) () 03/31/2015 postreply 10:16:53
• have you tried to google 1031 exchange? -海泠- ♀ (0 bytes) () 03/31/2015 postreply 10:23:26
• yes, but I don't want to buy another one. -meowi- ♀ (0 bytes) () 03/31/2015 postreply 10:55:10
• cap gain and depreciation recapture are mutually exclusive -njrookie- ♂ (0 bytes) () 03/31/2015 postreply 10:28:59
• Yes. You take the 25% for the recap total (not the 20%) -jjj7- ♂ (0 bytes) () 03/31/2015 postreply 10:34:21
• That is what I don't understand, it seems taxed twice from this -meowi- ♀ (0 bytes) () 03/31/2015 postreply 10:42:31
• from this case, the calculation -meowi- ♀ (319 bytes) () 03/31/2015 postreply 10:53:34
• remember for the recapped depreciation, ... -njrookie- ♂ (78 bytes) () 03/31/2015 postreply 11:08:31
• thank you njrookie, please one more question below -meowi- ♀ (514 bytes) () 03/31/2015 postreply 11:42:55
• I find another case, it was done another way -meowi- ♀ (640 bytes) () 03/31/2015 postreply 11:52:19
• I think your second computation correct -njrookie- ♂ (311 bytes) () 03/31/2015 postreply 11:53:25