Capital Gains

[zaddhahn]

What is the name of your state?What is the name of your state? Kansas

My wife's father passed away and left us his home. We have been renting it for about three years and have never lived in it. I am atempting to sell this property and was wondering what kind of taxes I will be hit with ?

 

[abezon]

If you've been claiming depreciation, you'll pay 25% on the recaptured depreciation & 5 or 15% (depending on other income) on the capital gains (difference b/t house's FMV when you inherited & your net selling price). See the tax pro who's been helping you with the Sch.E for precise numbers.

If you've been doing your own Sch.E, see a tax pro to make sure you didn't miss any deductions.

Taking depreciation is optional, & you do not have to recapture depreciation you didn't claim IF you can prove the actual amount you claimed.