Sale of a Rental Property Tax Consequences & Depreciation Recapture

In this video, we discuss the sale of a rental property and the expected taxes associated with the gain on the sale of the rental property. You need to take into consideration the depreciation recapture which taxes a portion of your gains at a higher tax rate than your long-term capital gains.
The sale of rental property tax treatment will be a combination of capital gains composed of usually long-term capital gains taxed at either the 15% rate or 20% rate and also the higher 25% rate of depreciation recapture. So if you were wondering about the rental property tax or the sale of rental property tax treatment, this will be a great video for you.
This video focuses on the federal income taxes with the IRS. Depending on your state, your state-specific taxes will be unique to the state that you live in for the rental property sale.
Additionally, this video focuses on the capital gains on the sale of the rental property. Please refer to our other videos for accumulated losses that get released during the sale of the rental property. Please refer to our other videos for rental property activities and deductions on the Schedule E for the years that you are renting out your property for recording the rental income and rental deductions. We have a great video about most frequently missed deductions for rental properties and the Schedule E.
And as always, please leave us any comments or questions below, we'd be happy to get back to you.
Thank you!
From the ClearValue Tax Team.