Posted by David Krulac on May 08, 2000 at 05:21:48:
- if personal residence for 2 of last 5 years no tax on first $250,000 gain if single and $500,000 if married.
- Federal long term capital gains rate, longer than 12 months is 20% for most people, with ordinary income at 28% or greater. Recapture of depreciation taken since purchase is taxed at 25%.
- don’t know California rate.
- appraised value, asssessed value, and mortgage balance don’t enter into capital gains computation.
- take the gross sale price minus costs of selling like commission, transfer tax, deed prep. and fix up costs in the last 90 days. Then take the purchase price, minus depreciation already taken, plus capital inprovements. Subtract this figure from the first figure to determine the capital gains. Multiply times .2 for the federal tax and add .25 times the depreciation taken for the total federal tax.