The loss has already been used up to offset active income over t

本帖于 2014-09-17 14:12:01 时间, 由普通用户 bced 编辑
回答: Yes, you will pay taxes when you sell at gainWisdom1012014-09-17 13:20:22

For example, I have a 70k W2 job and one rental property bought at 275K.

Every year, rental property generate income 8k, depreciation 10k,expense 3k total loss on rental property is -5k, I use it to offset my W2 income. so my adjust gross income was brought down to 65k

I hold the house for 15 years. In year 15, the house was sold at 375k.

Gain= 375K-( 275k-10k*15)=250K tax as capital gain

Ordinary income = 10*15=150K

Suppose I still make 70k 15 years later, In year 15, My ordinary income would be 220k, my capital gain would be 250k.

right? 


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