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I am considering selling a rental property which has been fully depreciated. I bought it for 60K with 10K as land value. It is going to be a tear-down with land value now being around $250K. I am in the 25% marginal rate bracket for 2013. How much capital gain tax that I might expect to pay on April 2015?

If I have less income in 2014, say less than 100K, would that affect my capital gain tax on the rental property?

Well, your capital gain (before selling and demolition expenses) will be under $240,000- the land value less the $10,000 basis of the land LESS the selling expenses and demolition costs. (Or will the buyer be paying for the demolition?)

You say you're in the 25% regular tax bracket. Married or single makes a difference. Your federal tax rate on the capital PROBABLY is 18.8% (max rate of capital gains = 15% plus the 3.8% new tax on NII - (net investment income.) It doesn't sound like you'll be in the top bracket, where your capital gain rate would go to 20%.

State taxes would be additional, and may or may not be deductible for federal purposes, depending on if AMT applies, and it usually does, when AGI is mostly capital gains.
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