[quote=tnuomarap][quote=SK in CV]Lower of the two.[/quote]
Thanks – that’s what I was afraid of, I thnk these cap gains calcs are roughly correct then.
Original purchase price: $272,000 (not including commissions, etc..)
Sale Price: $333,000
It’s been rented for (5) tax years with an annual depreciation of $10,318
Depreciation recap: 13250
Fed Cap Gain: 6653 (15%)
State (CA) Cap Gain: 14603.25 (15%)
ACA: 0%
I don’t understand why state cap gains so high?[/quote]
fed tax on cap gain is be less than on ordinary income. Ca tax on cap gain is same as ordinary income. Based on those numbers, cap gain should be about $105K. Tax amounts don’t look right. Make sure you deduct costs of sale (commission, etc.) from the cap gain.
