Depreciated rental condo building (exclusive land) from $86,012 to $60,082. Per Tax statement Current Building value is $128,670. How is the recapture value taxed?

Laszlo · ‎03-20-2021

How do you calculate tax on real estate recapture value?

abctax55 · ‎03-20-2021

huh?

Has the condo SOLD for that $ 128,670?

And I 'm not familiar with this *recapture value* thingy you are referring to.

HumanKind... Be Both

Rigo · ‎03-20-2021

You continue depreciating the condo building based on its original cost of $86,012, ignoring its property tax assessed value and fair market value.

Laszlo · ‎03-21-2021

Selling rental condo for $240,000. Bought it for $114,683. Bought it in 1989, selling in 2021.

1.At what capital tax rate is the gain/profit of $125,317 taxed? Is the gain capital gains?

2. Is the depreciated value considered income? Do you add it to the sale price?

abctax55 · ‎03-21-2021

20% (max rate on capital gains, but beware of impact on other income)

No

And.....

Hi there,

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Cheers!

HumanKind... Be Both

Accountant-Man · ‎03-21-2021

Whether it is 20%, 10%, or 25% depends on the owner's tax rates.

** I'm still a champion... of the world! Even without The Lounge.

George4Tacks · ‎03-21-2021

https://proconnect.intuit.com/community/form-8949/help/entering-a-bulk-sale-of-assets-in-lacerte/00/...

should get you there. Sell the building and the land and any other assets that go with the what I assume is a rental. If you don't have land listed with method of 99 (no depreciation) then there is a step to adjust the basis.

Answers are easy. Questions are hard!

sjrcpa · ‎03-21-2021

The profit is more than 125,317. The basis is reduced by the depreciation.

The more I know, the more I don't know.

Laszlo · ‎04-23-2021

I plan a 1031 Exchange for a property of equal or greater value> Can the former property appreciation and depreciation carried forward to new like kind property?