Minh wrote:

- quote -

The following is approximately my understanding, based on
form 4797 and Schedule D instructions for last year. The
laws may have changed again....

Depreciation on personal property involved in the rental may
be recaptured as ordinary income.

Depreciation on the real property involved in the rental is
taxed at a rate of at most 25%.

The remaining gain is taxed as long term capital gains, at
at most 15% (less to the extent that you are below the 25%
tax bracket disregard the gains).

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I am California resident and sell a rental home in
Washington State. I lived in this house for 1.5 years and
renting for 3.5 years. Please let me know how much taxes I
have to pay on the capital gain.

I have heard many different answers, first is about 10%
because long term investment.

Second, there is no long term investment on rental property.
Tax % is the same as Federal Income Taxes - (about ~ 30%)

Tam

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