Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: WPatch Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: Sec 1250 Gain Date: 12/8/2001 1:45 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I'm trying to understand how to treat LTCG on my rental house (sold this year). The adjusted basis is $106K (with selling expenses etc but not including depreciation) and the sales price was $102K. Loss before depreciation is $4K. Depreciation taken was $12K. Gain after depreciation is $8K. Depreciation ran from 1993 - 2001, straight line.

However, we also sold unimproved land this year with LTCG of $50K.

My question: How much of the depreciation will I be taxed on? Will I pay 25% tax on the full $12K or on the $8K remaining after the loss? Do I need any forms other than Schedule D?


You have only a $8,000 gain on your reental house. payable at the 25% depreciation recovery rate. Section 1250 property is reported on Form 4797, which feeds into Sch. D.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Berkshire Hathaway

Brookfield Asset Management
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement