- quote -

Sure. The amount subject to tax at ordinary rates is the total taxable
income less the capital gains (not including the amount subject to the 1250
recapture). If the sale of the property was the only thing that happened
this year, the $40K recapture less MFJ with no kids would result in about
$2,513 in tax (6%). And since they would be still below the top of the 15%
bracket, they would even get some of the real LTCG taxed at 0%.

[Neglecting AMT and all that stuff].
--
Don EA in Upstate NY

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In article <IEqUk.11847$Ws1.2764[at]nlpi064.nbdc.sbc.com> ,
Mark Bole <makbo[at]pacbell.net> wrote:
- quote -

Can that happen with $1 million in capital gains?

Seth

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On Mon, 17 Nov 2008 22:29:41 EST, Mark Bole <makbo[at]pacbell.net> wrote:

- quote -

Could it also be more then - if my ordinary tax rate is higher than
25%?

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mike[at]nosamm.org wrote:
- quote -

The ordinary tax rate being less than 25%.

-Mark Bole

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The property was purchased in 1976 or so in Calif for about 50k ( -
now the land value only - is about one million).
80% of the property purch value (50k) or about 40k was depreciated
straight line because it was regarded as the rental portion.

Question - assuming no complications - and nothing fancy - will be
the tax rate be 25% on the 40 k recapture - if sold today?

What could cause it to be less than 25%?

m

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >