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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?

I am trying to estimate my taxes for the year and pay state taxes in advance. My accountant says he can't help me yet because he doesn't have his 2001 tax software.

Thanks in advance
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