what percentage is capital gaines taxes on rental property?
I have a leasing property and want to know what percentage the tax is on captial gaines if I were to sell my property. I was thought it is 15% am I incorrect?
Right gain is 15%.
Gain from depreciation uses ordinary income rates, but stops at 25%.
For example, you paid $100,000. You’ve take $25,000 for depreciation. You sell at $150,000. $50,000 is at 15%, $25,000 is at up to 25%.
(You can also get nailed by a small bit of AMT.)